Real estate investment trusts (SCPIs) have replaced property companies created in the 1960s. In 1970, they were placed under the supervision of the COB (Commission des Opérations de Bourse) which later became the AMF (Autorité des Marchés Financiers – the French stock market authority); nevertheless, they were not stock market products and depended on collective investment undertakings (OPCs – Organismes de Placement Collectif).
From 1980, the strong development of the real estate market favored the savers’ interest in SCPIs whose offer grew considerably, because of their much higher return compared to that of regulated passbook savings accounts, and with a lower risk.
When you invest in ‘paper stone’, you become the co-owner of a property whose management is entirely organized by the company that bought it. Rental income is prorated to the number of your shares and is paid to you regularly, either monthly or quarterly.
In this article, we will give you five tips and explain why SCPIs are an interesting investment regardless of your investor profile, then we will list their advantages as well as their drawbacks.