Investing in real estate via fundraising in order to receive a share of the rents: the offer seems attractive but the Financial Markets Authority (AMF) calls on investors on Friday to be extremely vigilant because of the risks involved.
The AMF denounced in a statement the commercial speech, sometimes misleading held by the initiators of these offers, which are more and more numerous and which are aimed in particular at a very young audience. The platforms offer fundraising that allows companies to buy buildings, in exchange for part of the income generated by the rental of the property and a possible capital gain on resale, royalties.
While commercial communication often emphasizes an investment in real estate, investors do not in any way become owners of the property, reminds the AMF. They simply gave money to a company that was often poorly capitalized and therefore without capital to deal with difficulties.
Investors are exposed to loss of invested capital
Consequently, in addition to the risks usually associated with a real estate investment, such as vacancy or non-payment of rents, investors are exposed to the loss of the capital invested.
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The market policeman, one of whose missions is to protect savers, also mocks overly optimistic, even idealistic promises of returns and notes shortcomings in the quality of the information provided, the handling of complaints or access to the AMF.
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