A niche that can improve the performance of life insurance or PER, News / Actu Epargne

Holders of life insurance contracts or retirement savings plan (PER) unit-linked accounts generally see savings boosted by the extraordinary performance of the stock market in 2021, but 2022 is much more difficult for savers. I promise to be. If investing in the stock market is unavoidable in the long run, real estate is another interesting support for diversifying assets and leveling risk without sacrificing hope for returns.

Life insurance real estate refers not only to SCPI, but also to SCI, which can invest in other real estate assets. In recent years, housing niches have also been very successful in offering very high yields. These are SCIs on the theme of life pensions and home care for the elderly. Currently, two products are available, Via Générations and Silver Avenir.

ViaGenerations

Turgot Asset Management is a life insurance policy and retirement savings plan distributed by specific insurance companies (Ageas France, APICIL Epargne, Generali Life, Swiss Life, Turgot AM) and is exclusively distributed in Unitlink (UC) format SCIVia Générations. The movement started in 2017. The Fund purchases bare ownership of residential real estate by paying capital to the seller who grants the right to life, the right to use and the right to reside or usufruct, without rent. Elderly people find a way to stay home, benefiting from the additional liquidity that allows them to meet their needs through this solution. The advantage for investors is that they pool the risks and hazards associated with life expectancy into a real estate portfolio already worth € 850 million.

Silver future

Created in July 2020, SCI Silver Avenir is managed by Federal Finance Gestion, a subsidiary of Crédit Mutuel Arkea, and through acquisitions, seniors need additional resources to fund retirement and addiction at home. It also aims to be able to be. Full ownership of their residential real estate (with an average discount of 40%), especially with reservations for use and right to housing (DUH). This SCI weighs more than 500 ME and has most properties in the Paris region and Côte d’Azur. Again, not all life insurance policies offer it. You should pay particular attention to Suravenir or Spirica.

Rising French house prices

Of course, these two SCIs have directly benefited from the surge in residential real estate prices in France and the health crisis (on average about + 10%) over the last two years. Therefore, its performance exceeds the SCI category and is most often invested in offices and other tertiary assets. Via Générations set an annual target of 5%, reaching 5.79% in 2021, after nearly 7% from 2018 to 2020. Silver Avenir also showed 8.8% in 2021. The selection of acquired housing is effective in realizing capital gains through resale. SCI can collect 100% of the value of an item when it is released and resell or rent the item.

Costs and risks

These two SCIs have a reasonable admission fee of 2% and an administration fee of 1.6% excluding tax. Purchases and resales are made in connection with the net asset value calculated twice a month. The recommended investment period is 8 years. However, keep in mind that no capital guarantees are offered and it can be more difficult to get out during periods of falling stock prices, especially if the French real estate market is modified.