Most people know of the Société Civile Immobilière (SCI) as a means of owning private property, but there are a number of SCI funds that invest in a number of different areas.
These funds generally are aimed at generating regular income around some 4,5% gross per annum since the income return is from the rents received (less fund expenses), but these funds can be expensive to acquire and especially exit from since there are evidently linked to property.
They can also be more difficult to obtain capital from since the underlying investment is property so the investment is illiquid, meaning that restrictions can apply as to how much and when funds can be taken from the investment. .
There is a similar investment, the Société Civile de Placement Immobilière (SCPI) which, in addition to the activities of the SCI, can also invest in other property-related funds.
There are then a plethora of property-related investments that invest in, for example :
– listed buildings
– furnished accommodation (hotels and motels)
– new builds
– residences for the aged
– office buildings
One of the advantages of property investments is that they the only investment for which one can borrow to make the investment, and without the need of a cash deposit.
The other main advantage is that that property has a tendency to be more stable in its value than the financial markets.