HELPLINE: 
Use Borrowed Capital to Grow Your Property Portfolio Over Time
The lowdown. SCPI credit leveraging is a strategic way to invest in French real estate through Société Civile de Placement Immobilier (SCPI) using a mortgage or personal loan to fund the purchase of SCPI units. With AXA Banque offering credit at 3.19%, and average SCPI yields at ~5.7%, the returns can be attractive.
How it works. To benefit from SCPI credit leveraging follow these steps:
- Take out a loan. Typically over 15-20 years.
- Invest the full amount. Aim for one or more SCPI funds.
- Receive regular income. Gross yield from the SCPI is 4-6% per year.
- Repay the loan. Once repaid (on a monthly basis) you own the portfolio outright.
- Deduct loan interest. Possible by opting for Revenus Fonciers taxation.
An example. These sample figures give a good idea of what to expect:
- Loan: €140,000, yield: 5.7% (€7,980/year)
- Interest: 3.19% (~€4,466/year)
- Net income (before tax): ~€3,514/year
- Monthly top-up: Approximately €125-€175/month
Next steps. We can help you understand how SCPI credit leveraging can support your wealth growth. Note that we handle both the bank and fund paperwork on your behalf.