Real Estate Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Investing In Commercial Property


Investing in commercial property is well beyond the financial means of most people. Few can afford the large sums of money involved in buying commercial real estate. For most of us our investment in real estate is limited to where we live - our home.

But unfortunately our home doesn't generate any income or cash flow. In fact it probably costs us money in maintenance, rates and upkeep.

Sure the financial incentive to invest in your own home is to offset the cost of renting or the capital gains you get when you sell your house if it's value has gone up.

Most financial advisors will tell you the best investment strategy is to pay off your home mortgage as quickly as possible to reduce your debt.

But what about after that if you want to invest in property? You have a choice - invest in another residential property or a commercial property.

Residential properties can often provide a good cash flow from rent, but there are associated hassles with getting good tenants, poor tenants trashing your property and the ongoing cost of maintenance. If you like playing the role of the landlord and being involved in all those activities great! But what if you want a hassle free commercial property professionally managed.

An increasingly popular investment amongst smaller investors and retirees is through syndicated property trusts. This is known as direct property investment where smaller investors buy small parcels of a larger property through a prospectus. These projects are managed and marketed by licensed property dealers.

The prospectus is lodged with the Australian Securities and Investment Commission and the property and syndicate is professionally managed.

As of December 1999 there were 77 Property Syndicates operating in Australia with more than $1.45 billion invested. Nearly 60 per cent of these investments use borrowed money, known as "gearing".

The benefits for investors buying into property syndicates is they can purchase relatively small parcels, for example as little as $10,000 and gain exposure to the commercial property market.

There is also the added benefit of the commercial property market often being in negative correlation with the share market so investors can spread their risk across their portfolio.

Another benefit provided is the regular income provided by syndicated property trusts, high yields and relatively low risk.

A typical breakdown of a property syndicate is the property management company buys a commercial building ranging from between $10 to $30 million and then they market this to around 300 individual investors who each have an equity subscription of between $40,000 and $50,000 each.

Simon Toovey is the Managing Director of Glenmont Properties a Perth-based property syndicate.

He says their main objective is to invest in properties that have quality tenants, long-term leases, strong returns and good potential for capital growth.

"The benefits of investing in a property syndicate are that it can enhance your lifestyle by providing a regular income, you can set and forget it," he said.

Toovey gives the example of a typical investor profile of someone looking for secure, regular income rather than capital growth.

'The most important aspects are location, lease, tenant and management. It's no good having a lease when the tenant holding that lease is a $2 company. Ideally the tenant is either a government department or a major, "blue chip" corporation," he said.

"Ultimately, it's all about income. The right property investment should provide you with more income, income that will enhance your lifestyle, either now or in the future."

Property syndicates may not be for all investors but they do provide an option for diversifying your investment portfolio.

Ten Tips for First Time Property Syndicate Investors

1. Set your objectives and work out a budget for how much you want to invest.

2. Understand the risk/reward tradeoff. The higher the return the higher the risk. Aim for syndicates with a return of between 8 and 10 per cent.

3. Understand the risks of property syndicates. These are a potentially unfavorable market when selling, rising interest rates, member liabilities and future potential tax changes.

4. Remember this is a long-term investment, usually around 7 years. It is "illiquid"; meaning you can't take your money out of the investment during this time.

5. Identify investment syndicates with quality property in a good location with potential for capital growth. Ask for a copy of any independent investment and ratings reports.

6. Analyze the lease arrangement. Ask how much rent or income will the property produce, what the income growth is and how long will this continue?

Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom's blog at http://www.8mmedia.blogspot.com.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

18 Ways New Real Estate Investors Can Succeed In 2018
Forbes
Successful executives in the real estate industry from Forbes Real Estate Council share firsthand tips & insights. Forbes Real Estate Council ,. Real estate investing, in all regards, has changed over the years. The techniques that worked for an ...



Chicago Tribune

Steppenwolf Theatre selling nearby real estate to fund campus expansion
Chicago Tribune
She declined to say how much the developers plan to pay for Yondorf Hall. The real estate sale will help pay for the new building with a 400-seat theater, which will replace the 299-seat Upstairs Theatre on its main campus, St. Germaine said ...

and more »


Chicago Tribune

Real estate agent jailed for burglary said she stole jewelry to fund pill addiction
Chicago Tribune
In 2016, a Bloomingdale real estate agent scheduled more visits to houses for sale than any other agent in the Chicago area. But it turned out her motivation was at least in part to find things to steal, a police detective testified Friday at the woman ...



CNBC

The Federal Reserve thinks stocks and commercial real estate prices are getting too rich
CNBC
"Valuation pressures continue to be elevated across a range of asset classes, including equities and commercial real estate," the report says. Tae Kim | @firstadopter. Published 11 Hours Ago Updated 11 Hours Ago CNBC.com. Technotr | Getty Images ...

and more »


Rising Mortgage Rates Adds New Twist To Real Estate Markets
Seeking Alpha
Amid a wild month of volatility, this week was rather tranquil. REITs finished roughly flat, on-par with the broader indexes. The 10-year yield topped 2.95% before retreating below 2.90%. Earnings season is nearly complete. 2017 finished strong for ...



These 6 Top Real Estate ETFs Are All Falling Hard -- The Motley Fool
Motley Fool
Stocks have seen immense volatility so far in 2018, with major market benchmarks having seen huge initial gains, fallen back in the first official market correction in years, and then climbing back toward gains for the year. Yet in the carnage that the ...

and more »


The top NYC real estate events next week
The Real Deal Magazine
On Feb. 27, the Brooklyn Historial Society is hosting its Brooklyn Real Estate Roundtable Breakfast from 8 to 10 a.m. at the Brooklyn Historical Society, 128 Pierrepont Street. Attend the 2018 Series Premiere, which marks the roundtable's 12th year of ...



Forbes

Six Things You Must Do To Oversee Your Passive Real Estate Investments
Forbes
So you've invested in real estate through limited partnerships, syndications or funds, and someone else is doing all the dirty work so you can spend your time enjoying life. Because you're a passive investor, you don't need to do anything, right ...



Toledo Blade

Jury finds real estate agent guilty of money laundering
Toledo Blade
Mr. Crawford was pleased with the jury's verdicts. “Money laundering is a serious offense,” he said. “It's one the FBI and the IRS investigate and will continue to investigate, and, in appropriate cases, we will prosecute.” Mr. Crawford argued to the ...



Dallas News (blog)

Dallas real estate developer arrested after child porn found on his home computer
Dallas News (blog)
A Dallas real estate developer has been arrested after several videos depicting prepubescent girls being raped were found on his home computer, authorities say. Andrew Kasnetz(Dallas County Jail ). Andrew Kasnetz. (Dallas County Jail ). Andrew ...


Google News

home | site map
© 2006 TIGER MEDIA