Building a Portfolio, through diversification and syndication.
Due to the ever increasing price of properties, restrictions on loans, increasing and new duties and taxes, it is becoming harder for investors to increase their portfolios.
The question … what’s the next step for investors who want to keep growing and increasing their property portfolios and have cash of AUD$100-$150,000 but perhaps:
-Don’t want to (or cant) put down the huge down payments now required for most residential property
-Don’t want to pay the new foreign investors duties and taxes
-Don’t want to pay Stamp Duty
-Can’t get a bank loan for the mortgage because of being self-employed, age, unable to provide sufficient income (or other reasons)
Syndication offers many benefits
That is why buyers turn towards property investment syndicates. In an investment like a property syndicate, multiple investors pool their cash to buy (usually) a commercial property.
This collective contribution helps to easily purchase real estate which would be difficult to buy for a single investor. And if you’d rather not spend your time researching individual properties, attending exhibitions and so on, syndication is a great option for putting your cash to work while letting experts do all the work.
Our property syndication investment model is ideal for sophisticated investors that are interested in an alternative to classic property investment that offers potentially higher yields, risk mitigation, increased security and strong capital growth on medium term investments.
Advantages of Syndicated Property Investment:
The obvious advantage of such an investment is the amount of cash you save. It’s no secret that to buy a decent property in Australia or Hong Kong, you need a lot of money just for the down payment. In addition, for foreign buyers, Australia has additional taxes* on top of the purchase price of up to 12%, while Hong Kong has taxes* up to 30% on residential real estate. (*The Government refers to these taxes as Stamp Duties or Additional Buyer Duties)
With the help of syndicates, you can invest in a blue chip, high quality property that may otherwise be out of reach. Best of all, many establishe, long standing professional property companies buy properties that they can “value-add” to, speeding up and increasing the capital growth rate.
Less Cash Needed for Growth
In case you purchase a property or properties on your own, it can be difficult for you to keep making these investments. You either might need to save up for that huge amount for each deposit or grow the equity of your current property. You can make smaller and regular investments by investing in syndicates which means that you need less cash for growth.