While property syndicates are traditionally associated with major financiers undertaking large scale commercial, industrial, retail, hotel and leisure projects, the funding model can also provide opportunities for smaller property investors with limited available capital.
Syndication has opened the way for these investors to participate in significant commercial, retail and industrial property ventures that might otherwise have been out of financial reach.
This property and capital investment strategy enables the pooling of resources and expertise in individual projects while and, for those who seek involvement in larger scale developments, it is an opportunity to observe and learn while reaping the rewards of cash flow and various tax benefits.
Moreover, many investors are now taking personal responsibility for their own financial future after sustaining heavy superannuation losses after the global financial crisis. This involves setting up a self-managed super fund and seeking out capital investment opportunities – such as property syndications – to grow their retirement savings.
Research is a critical step before moving down this path and finding the right support is essential to achieving the best outcome. This research might involve:
- Seeking advice from a financial adviser, accountant and solicitor on the risks associated with a syndicated investment and ensuring they provide advice on any relevant paperwork;
- Understanding the impact of long term investments and the implications of capital being locked in for a fixed period of time;
- Understanding the nature of the property syndicate (commercial, retail, residential) and its long term strategy; and
- Researching all parties involved in the syndicate (developer, project manager, architect & builder).
Investing in a property syndicate is not for the novice and should not be contemplated without homework and conferring with expert consultants.
At Perks, we have the expertise to assist with property syndicates and can guide you through the process. If you’re an owner or developer looking to raise finance, we can structure and manage a well planned syndicate.
For more information call us today on (08) 8273 9300.
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