How does this investment work?

Lionel Sadoun

Investor relations

Flower window sea

When investing with Harmony, you are lending money for the house-buying project: you're subscribing to bonds. How do these bonds work, and what is your share of the rental income and any property appreciation? Here is how it works.

Investment characteristics

To enable us to buy a property with several investors, our company issues bonds. By subscribing to these bonds, you lend money that will be used to purchase the house, as well as for its renovation and future work.

These bonds are financial securities that you own. They give you a return on your investment by allowing you to earn interest.

Here are their three main characteristics:

  • They last a maximum of 10 years. At the end of this period, we are obliged to repay their value to you.

  • They pay variable interest. The amount you receive each month depends on the property's rental performance.

  • Their value depends on the value of the property. When estimated by an expert, if the value of the property falls or rises, the value of your bonds also falls or rises. This allows you to benefit from the potential capital gain when the property is sold.

All the characteristics of the bonds, the project and the risks associated with the investment are communicated to you in the documents provided before you subscribe. To understand how this activity is regulated, please read our article How to invest with Harmony or our FAQ.

house by the sea with bicycle

Rental income and property appreciation

The amount you receive each month corresponds to the income generated by the property, minus expenses.

The income generated by the property is the rental income. Expenses correspond to house maintenance, energy and consumables, taxes and property management fees.

Once the property has been purchased, we add value by carrying out renovation work and furnishing it to a high standard. As a result, the price of the property after renovation is higher than the purchase price. What's more, the property is subject to an annual revaluation, which enables us to realize a potential capital gain at the end of the holding period, when the property is resold.


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