The Autorité des marchés financiers denounces the “sometimes misleading commercial discourse” held by the platforms which offer to invest in real estate via fundraising in order to receive a share of the rents.
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 “to be extremely vigilant” because of the “risks incurred”. The AMF denounced in a press release the “commercial, sometimes misleading discourse” held by the initiators of these offers, which are more and more numerous and which are aimed in particular at a “very young” public.
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,” recalls the AMF. They simply gave money to a company “often poorly capitalized” and therefore without equity to face difficulties.
Therefore, “in addition to the risks usually associated with a real estate investment”, such as vacancy or non-payment of rents, investors are “exposed” to “loss of invested capital”.
The market policeman, one of whose missions is to protect savers, also mocks promises of returns “too optimistic, even idealistic” and notes shortcomings in the “quality of the information provided, the processing of complaints or access to the mediation of the AMF”.