Louve Invest is the first broker to offer a 2.5% retreat (cashback) with approximately 40 SCPIs. Details: Full Review Louve Invest.
This article assumes that you are familiar with the concept of SCPI. If not, it is advisable to read our study, SCPI Manipulation, before proceeding.
Life insurance or cash SCPI?
You need to know that SCPI sharing can be obtained in two ways.
- Buy directly (Also known as cash): This means that you own shares personally. Rent will be sent directly to your bank account.
- Purchase with life insurance : Collected shares and rent are within the scope of the contract. In general, rent is automatically invested in a euro fund (risk-free fixed income fund) and can later be reinvested in another vehicle.
These two capture modes Various results on some important points : Returns, fees, taxes, liquidity, etc.
First, we will elaborate on the advantages of investing in SCPI with life insurance, and then move on to the disadvantages. After explaining how to choose the best SCPI for life insurance, Detailed comparisonThe best real estate contracts and funds.
Benefits of SCPI investment in life insurance VS live
There is Some Benefits of Investing in SCPI Through life insurance, they are often not suspected. please :
Investing has become easier
Cash SCPI buys SCPI shares with a nominal value of typically around € 1,000. Inconvenient for a small wallet People who want to diversify into various SCPIs!
With SCPI through life insurance, the insurance company allows you to invest in a fraction of the stock. Also, the admission ticket is low, at least around 100 euros, so it can be easily distributed across multiple SCPIs.
Easier transferable stock
If you hold SCPI shares directly Resale is only possible if the investor is willing to buy them back.. Therefore, liquidity is not guaranteed. It is the management company that mediates between buyers and sellers to streamline transactions. Resale of stock can usually take a month, but if there is no demand (for example, in the case of a real estate crisis), the period can be quite long.
Conversely, if SCPI is insured for life insurance, Liquidity is guaranteed by the insurance company.. Resale of your stock will take place in a few days, regardless of market conditions. In the event of a real estate crisis, the insurance company can buy back your stock from you.
Reduction of fees and taxes
Taxation advantageous especially when TMI is high
As a general rule, income from SCPI is taxable.Income if you hold shares directly Considered property income It is subject to income tax and social security contribution (17.2%). Therefore, the higher the marginal tax rate (TMI), the higher the taxation. For example, an investor with a TMI of 30% will eventually pay a tax of 47.2% on income from SCPI.
Therefore, it is often wise to invest in SCPI through life insurance. Taxation is much better.. First, income (whether rent or resale of stock) is not taxed as long as it is in the envelope. Taxation applies when the capital is recovered by redemption in full or in part. From her:
- Withdraws up to € 4,600 from 17.2% annually, then 24.7% * If your life insurance policy is more than 8 years old
- 30% (17.2% social security contribution + 12.8% tax) If the contract is less than 8 years
*In fact, eight years later, savers will benefit from the income tax deduction, reducing the flat tax to 17.2% (social security contribution without income tax), raising it to a limit of € 4,600 per person and € 9,200 per couple. After deduction, for payments up to € 150,000, the income tax will be raised to 7.5%, above which it will be raised to 12.8% and back to a 30% flat tax.
This is why it is financially advantageous to choose to invest in life insurance unless the TMI is 0% (and you plan to stay there for the next few years).
Reduction of admission fee
Like many real estate investments, SCPI has a subscription fee (Or admission fee) is high. For direct units, these costs vary between 10% and 12% of the investment, as explained in the article. In short, it’s the best SCPI with reduced costs.
These admission fees are lower for life insurance and are generally about 6-8% of the investment. This is due to the fact that insurers with trading volumes of millions of euros can negotiate better rates with management companies.
To be on the safe side, this is the waiting time to get your first rent, usually 6 months.This delay is due to each collection of funds You need to invest quickly in a new building To avoid diluting existing investors, real estate investment naturally takes time.
With life insurance, the qualification period is much shorter, often one month. This saves 5 months of rent compared to cash purchases. This is not negligible.