Buy REITs in a life insurance contract: differences from a direct investment in REITs

SCPI shares in a life insurance contract

A few insurers now allow their customers to purchase shares of REITs in their life insurance policy. What interest to investors? Enjoy the advantages of REITs in a privileged tax framework. What are the differences compared to a direct investment in REITs?
Expenses
Buying shares in REITs as part of the insurance obliged to pay additional charges:

    potential entrance fee of the contract (variable according to the contract, between 0 and 5%)
    Contract management costs: REITs are considered a Unit of Account and support to the securities management fee under the contract
    fees on rental income: some insurers shall return that 85 or 90% of rental income. This "shortfall" can be likened to a fee.

However, buy shares of REITs in a life insurance contract allows a saving on entrance fees of SCPI.

For most insurers, the discount is in the range of 2.5 to 4.5% but up to 10% in some !!

But that said acquisition costs of the lower SCPI says superior performance.
Taxation
This is THE big strong point of this type of installation, since you enjoy the benefits of REITs in a privileged tax framework:

    on income: the tax "classic" of life insurance that will apply >>> tax in proportion to the sums withdrawn only (if you let them capitalize revenues in the contract, you pay nothing) with the tax brackets to 4 years and 8 years.

    on capital gains: then and offline life insurance tax on real estate gains has been modified (he must now wait 30 to be totally exempt) in life insurance it is still and always a special regime >>> that applies the capital gains are taxed on redemption, according to the contract of age (with the thresholds at 4 and 8)

    Inheritance: while REITs bought live notary must go through the box and support of inheritance, REITs held in a life insurance policy benefit from the derogation of the life insurance plan (if paid before 70 year: € 152 500 per beneficiary exempt / if paid after 70 years: € 30,500 exempt of all beneficiaries)

Specific taxation of insurance is therefore all the difference! For an equivalent gross return (if you buy the same SCPI for example), and despite higher annual fees, the purchase of REITs as part of life insurance provides a much better net return, even for the tax-which would still acquit themselves of social taxes on income (13.5% and 15.5% soon).
The mortgage lever
On this point, purchase directly benefit, since it is not possible to buy on credit REITs and drop them on a life insurance policy: you have to pay cash.
liquidity
If you need to recover your funds sell shares of REITs that are held through a life insurance policy will be much faster since the insurer is required to hold liquidity.
So you can sell your shares in a few days (usually one to two weeks), while for SCPI shares held directly, it may take several months (which remains faster than selling an apartment, for example).
Conclusion
Once the desired gain REITs cash payment, no mortgage, so the purchase in the context of a life insurance policy is now much more attractive due to the specific tax life insurance and upper liquiditée.
It remains to choose the right REITs in the right life insurance policy ...

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