Stop the misunderstandings: investing in SCPI on credit is not complicated

Investing in credit in SCPI (Société Civile de Placement Immobilier) will allow you to accumulate capital without contribution or at least with a limited contribution. In addition, you will be able to take advantage of the leverage effect of the mortgage. This is a particularly attractive option at the moment given historically low interest rates. Also, when you invest by borrowing, all loan interest and ancillary expenses will be deductible from your property’s income. To make your project a perfect success, follow these 3 simple tips.

Choose the right type of credit

You have the choice between a repayable loan and a fine loan to finance your SCPI investment on credit. To help you make the right choice, here is the essential information to know about these two types of loans.

Last credit

The principle of credit in the end is to reduce the monthly payments which are used only to pay interest. The entire principal is then paid off at the end of the loan.

The main advantage of this type of credit is that all the monthly installments can be financed with rents. But be careful, it is reserved for people:

  • who have a capital equal to at least 30% of the amount borrowed to invest in life insurance;
  • which have a high marginal bracket.

The lender needs an additional guarantee to ensure your ability to repay the debt in one go at maturity.

Amortizable credit

This is the most popular credit method for financing the purchase of SCPI shares on credit. The repayable loan refers to a loan whose principal amount is repaid gradually over time. Often recommended as part of an investment in SCPI, it allows you to finance the acquisition of your shares without a contribution and with a low saving effort. With the most flexible repayment terms and attractive interest rate, this type of credit is well suited to low-income families.

Tips to get credit easily

Lenders can sometimes be reluctant to grant you a loan, as they generally prefer to finance so-called “home” SCPIs (self-managed SCPIs). However, bank SCPIs do not offer the same return as those of independent management companies.

However, by showing a compelling borrower profile, you can increase your chances of getting a loan from a bank. Please note that in order to validate your request or not, financial institutions take into consideration various elements, such as:

  • your debt ratio,
  • your personal contribution,
  • your professional situation (source of income),
  • the consistency of your project

The best loan terms are actually granted to you if your loan profile presents less risk to banking organizations.

Get a professional to accompany you

Regardless of whether your investment is made on credit or not, keep in mind that this type of investment has two main risks, namely:

  • extended holidays for rent,
  • non-payment of the rent.

This type of project is therefore a long-term commitment that can ultimately lead to significant losses. Great caution is really needed. To put all the benefits on your side, don’t hesitate to get support from a professional on the subject. It can, before any stock purchase decision, tell you whether or not this type of investment matches your asset profile.

This specialist can then assist you in your search for funding. He is also there to advise you in choosing the best SCPI to favor in order to minimize the risks. He is able to identify SCPIs exploiting perennial markets. Finally, he can help you diversify your investment.

Germain’s most recent articles (see all)

Leave a Comment