SCI Silver Avenir: the life insurance plan


Launched in October 2020, SCI Silver Avenir is to date one of the only vehicles available in life insurance allowing you to invest in real estate for life. For a few hundred euros, you invest in a wide range of discounted properties, because inhabited by a senior who therefore benefits from additional income while allowing him to keep his home. In 2021, SCI achieved a remarkable performance of 8.8%*. A performance that stands out at the time of the decline, regular each year, of the yields of funds in euros.

The investment in life

Most retirees own their primary residence. 77% of those over 70 are homeowners, but many have little cash. The life annuity allows a person to sell their main residence while retaining the right of habitation. A sale that will allow him to receive income without losing the use of his main residence. That’s good, 94% of retirees do not want to move. It is therefore an ideal solution for receiving additional income while maintaining your main residence.

A life annuity buyer will acquire a property with a strong discount (30 to 60% of the purchase price). At the time of the death of the occupant, he recovers the property free in full ownership. So the capital is multiplied by approximately 2 (we buy at 50% of the price and we recover 100% on the death of the occupant). Over a period of 15 to 20 years, this gives an annual performance of between 3.5 and 4.7% (excluding variation in the price of the property, excluding costs and taxation). With a very low risk since consolidation is automatic upon death. The only risk of loss is falling real estate prices.

Compared to another real estate investment, the purchase in life annuity offers many advantages: no rental management, no risk of non-payment or rental vacancy, and a certain solidity in the performance since the regrouping is mechanical: the placement is automatically revalued with the passage of time.

Investing in life also has a social character : by buying a life annuity, you allow the home support for seniors who also obtains additional income with the sale of his life annuity.

Finally, it is a market in need of supply for an increasingly strong demand: According to INSEE, the population over 75 will double by 2060. There will then be 11.9 million seniors over the age of 75, compared to just under 6 million today. Fortunately, many retirees have anticipated and saved with a view to creating a supplementary pension. But for those who couldn’t do it, or who did it insufficiently, the life annuity presents a very interesting situation, even vital, to generate additional income.

Why invest in a life annuity via SCI Silver Avenir?

Its main purpose is the acquisition of the bare ownership of real estate with a right of use and habitation or a life usufruct left to the seller.

Charlotte Evanguelidis, manager of the SCI, explains: “Silver Avenir aims to acquire residential real estate with a discount of 40%** on average for seniors. The target average age of occupants is 80 years oldfor an average life expectancy of about 12 years”.

As of December 30, 2021, the SCI held about 100 properties including 40% in the PACA region and 35% in Île-de-France. It purchased these properties at an average discount of 34%.

Investing in a life annuity via an SCI-type vehicle offers several advantages:

– The risk, in particular the risk of death, is shared : when you buy a property in life, the risk, beyond the fall in the price of real estate, is to recover the property only after very long years. Understand: that the occupant lives well beyond his life expectancy. A particularly “annoying” risk: you don’t want to wish someone’s death… By investing in an SCI type vehicle, this hazard is pooled: the SCI will indeed hold several dozen properties in life annuity. Some of these life annuities will last a very long time, but others will be much shorter. Finally, the average duration of the life annuities will be very close to the life expectancy of the occupants : the average age of sellers being 78 years, life annuities should have an average duration close to 13 years old depending on the company. We therefore remove the risk of death.

– The SCI also does not wish to play at all on the risk of death: It only pays the seller a “bouquet” (a sum of money), and no life annuity as may be done in certain cases. Even if the bouquet will be higher than if there were an annuity (the SCI buys the real estate with a discount), there is no longer any risk of having to overpay for a property with the annuities.

– The SCI is a liquid product, which you can resell at any time. The value of the property held by the SCI depends on the age of the occupant. With each passing year, the senior gets older and sees the value of his rights diminish. The value of the assets of the SCI therefore increases each year.

SCI Silver Avenir has 2% entrance fee, and an annual return objective of 5%* (not guaranteed) . In 2021, this objective was largely exceeded with an exceptional performance of 8.80%*!

SCI Silver Avenir is available on our best rate investment life contract. With its very low pricing and the quality of its media (funds in euros and units of account), best life investment rates offers an ideal framework for investing in a life annuity. Concretely :

How to invest in SCI Silver Avenir?

No entry or deposit fees are not taken at the time of opening or payments on the contract. Regarding the investment in SCI Silver Avenir, entry fees are limited to 2%which is very low for a placement of Pierre Papier.

– The management fees of the best life investment rate contract are among the lowest on the market with 0.60% per year.

– You benefit from advantageous framework of life insurance. Winnings are only taxed when they are withdrawn, at the flat tax of 30% with allowances and possibly a reduced rate if the contract is more than 8 years old. Life insurance also allows prepare its transmission by designating the beneficiaries in the event of death that will benefit a reduction in inheritance tax.

You can invest up to €10,000 in the SCIbut the share on this support may not exceed 30% of the total outstanding amount of the contract.

You don’t have a contract? It is time to open a new contract to benefit from the advantageous access conditions of SCI Silver Avenir. It remains to be determined on what to invest the rest of your payment. To support you in this process, best rates Placement has set up a solution accessible to all holders of a Placement Vie best-rate contract: the defensive allocation suggestion, made up of SCI silver Avenir but also a euro fund and two other quality real estate vehicles.

Non-contractual communication for advertising purposes

* Performance net of unit-linked management fees, but excluding contract management fees and taxes. Past performance is no guarantee of future performance. The performance target is not guaranteed.
The Silver Avenir unit of account (UC) is taken out exclusively within life insurance contracts. The underlying of this CU is SCI Silver Avenir, incorporated as a Société Civile Immobilière with variable capital. SCI Silver Avenir is an Alternative Investment Fund (AIF) within the meaning of the AIFM Directive. It does not make a public call for savings and is not subject to approval by the Autorité des marchés financiers (AMF). Risk of capital loss. Recommended investment period: 8 years.
Past performance is not indicative of future performance and is not constant over time. They are exclusive of taxation and annual management fees for your contract (0.60% per year). Real estate investments are long-term investment vehicles (minimum 8 years for SCIs) and must be considered from a diversification of your wealth. They mainly invest in property-related assets and are therefore exposed to property market risks. The value of these investments can go up or down depending on the evolution of the real estate markets, as can the income associated with them. Past performance is not a reliable indicator of future performance and is not constant over time.
Real estate risks: changes in real estate market prices, real estate development contract, shortage of properties corresponding to the selection criteria. Financial risks: rate (inflation, interest rate), liquidity, capital loss. Operational risks: failure of a tenant, rental vacancy, lack of operational history. Risks of over-longevity: mortality table with higher life expectancies.

** Based on ISP price. Average values ​​calculated based on the life expectancy and estimated rents of the property. Also applicable in the event of acquisition by dismemberment.

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