Accessible and hassle free with a 6-8% return, SCPIs are excellent investment vehicles for all expats in France, says financial adviser Daniel Butcher

Although the average investment in an SCPI is €50,000, most people will be surprised to discover that lump sums aren’t a prerequisite. For those lacking capital, it is possible to buy one share for around €300, growing the investment with a monthly transfer. With easy entry and a consistent distribution rate that has stayed between 4% and 8% for 30 years, what exactly is an SCPI and how do you get one?

An SCPI, or Société Civile de Placement Immobilier, is a collective investment vehicle through which investors earn income from rental yields without the hassle of buying a property and renting it out. Individuals invest in property on paper, known as pierre-papier.

This is an excellent way for married expats to share a continuous, long-term investment as it divides ownership rights

“We work with a curated collection of SCPI management companies who buy and manage property across sectors such as professionally operated buildings like banks, warehouses, hospitals and retirement homes,” said Daniel Butcher, founder of DTB Wealth Management. “Controlled by the Autorité des Marchés Financiers (AMF), they oversee the investment, so the only action investors need to take is picking up payments.”

He added: “They are a smart way for expats to earn passive income over a 10–15-year period, and, to give an idea of gains, the average income received on €200,000 would be €3,250 per quarter.”

Unusually flexible for a long-term investment, SCPI sums are obtainable in an emergency, shares can be sold at any point and policies can be opened in joint names.

“This is an excellent way for married expats to share a continuous, long-term investment as it divides ownership rights,” said Daniel. “Simplifying succession planning, in the event of a death, the policy continues with no disturbance to the income being paid.”

To make life even easier, as part of DTB Wealth Management’s new “all-in-one” service, clients can now have their annual income tax form completed for free, in addition to the SCPI policy documentation.

DTB Wealth Management tailors its selection of SCPI management companies and its advice to fit in precisely with the requirements of expats living in France. If you would like to learn more about SCPI investments and how they could increase your income in France, reach out to book a complimentary introductory consultation to discuss your personal financial goals.

Photo by Anukrati Omar on Unsplash

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