Where to invest in times of crisis?

Where to invest in times of crisis?

The financial markets have been in turmoil as a result of the health and financial crisis, which has affected all sectors. Some investors have turned to real estate because it is considered less risky than other investment sectors, according to some studies. However, real estate does present certain dangers, and must therefore be properly managed to avoid major losses. But it’s a popular investment in difficult times.

Real estate to build wealth

Investors should be looking for ways to protect their assets in light of the health crisis affecting the economy. The world is facing an unprecedented situation with a major health crisis. With its multitude of advantages, such as SCPIs, real estate can be considered the solution the French have been waiting for.

It’s important to remember that real estate is a long-term investment that always bounces back. The market can also experience downturns in certain contexts, but it always comes back to life. Even if prices vary according to specific factors, we know that real estate is a tangible asset that keeps us in control. In the long term, it helps you to protect your assets while ensuring their longevity, and above all to create wealth.

Real estate as a safe haven

Because it is not correlated with financial markets, stone is a safe investment when markets are unstable. However, investors should be wary of possible strategies. Real estate is a safe investment, both in France and around the world, because it serves a useful purpose as real estate. Investors could benefit from recurring income even in troubled times, because real estate meets a fundamental and timeless need.

SCPI as a simplified real estate investment

Stone can now be invested in directly via the SCPI, a new type of real estate investment. It’s a simple, practical approach to risk management. It’s also an excellent alternative to traditional real estate investment. SCPIs have also weathered the crisis and its impact rather well. SCPI de France has calculated that net inflows in the third quarter of 2020 were 1.01 billion euros. Despite a rather tumultuous economic situation, these figures are quite impressive.

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Containment measures have had an impact on real estate investments. The spread of telecommuting, business closures and rent adjustments have contributed to the widespread reduction in SCPIs in 2020. SCPI inflows fell by 26% in the first nine months of 2020, according to ASPIM (Association des sociétés de placement immobilier). As a result, SCPI inflows totaled 4.5 billion euros in the first nine months of the year, down 26%. The overall performance of commercial real estate investment trusts at September 30, 2020, according to the association, was 4.8%. Their current yield is 4.2% with a 0.6% revaluation of shares.

SCPI performance has not been significantly impacted by the current financial crisis, which testifies to their reliability and resilience. This investment remains safe and profitable even in times of economic turbulence, as it takes advantage of real estate investments.