As with any property investment, investors should make sure that investing in the CORUM SCPI is suitable to their financial position and investment objectives. The appropriate amount to invest in the CORUM SCPI depends on your personal financial position, investment horizon and appetite for the specific risks of real estate investments. Prior to any investment, you should read the information documents, in particular those related to the costs and risks of an SCPI investment. The value of your CORUM shares and any income generated from them may rise as well as fall depending on the situation of the real estate market and the rental terms of the properties. Of course, past performance is not a reliable indicator of future results. By purchasing CORUM shares, you are making a real estate investment: therefore, this is a long-term investment whose liquidity is limited and whose value and any income from it are not guaranteed.
Investing with borrowed money
Buying CORUM shares with borrowed money
How?
If you can afford to take on debt, then you can buy CORUM ORIGIN SCPI shares with borrowed money. Your monthly dividends will make it is easier for you to put money aside: any income you receive from the SCPI will help you cover part of the loan instalments. At the end of the loan term you will have earned a good amount of savings and you will continue to receive rents. You may also decide to sell your shares. Redemption requests are processed immediately and matched with subscription requests, provided that subscription requests have been made for at least the same amount.
Why?
- To create wealth.
- To save for your retirement.
- To save for your children's education.
Tax treatment
Your loan interest payments are deductible from the income you receive from CORUM, which is subject to property income tax.
In concrete terms, investing with borrowed money means...
Example: 50 CORUM shares bought with borrowed money
- Amount to be borrowed to buy 50 shares (€1,05 per share) over 10 years: €53,750
- 2017 net dividend yield(1): 6.45%
- Loan interest rate: 2.20%
- Insurance rate: 0.19%
- (1) Net of management fees.
During the loan term
|
Potential income from the SCPI (2) |
Loan repayment | |
|---|---|---|
| Monthly | €228.44 | €508 |
| Annual |
€2,741 |
€6,096 |
| Total over 10 years |
€27,412.8 |
€60,90 |
2) For shares entitled to dividends during the whole period considered.
At the end of the loan
| Amount of savings built | €53,750 |
|---|---|
| Potential income throughout the loan period | €27,412.8 |
|
Total cost of the loan |
€7,210 |