Hi,
I'm new on this site and haven't found any topics I want to know about so here goes:
I've got a few ppl interested in investing in properties to form something like a syndicate, what's/where's the best way to start out? What are the investments strategies and taxation tips?
Thanks
NY
Hi NY
Firstly welcome to the forum and i hope you enjoy your time with us.
Whilst i dont want to put a dampner on your investing ideas I would strongly suggest that you think very carefull about investing with friends or relatives as often what seems like a good idea now isnt necessarily everyones cup of tea down the track.
If you invest with other like minded people then you also have financing issues as each indiividual will have different circumstances and as each party will normally be jointly and severally liable for the entire loan.; This in its own right is not necessarily ideal.
Advertising for syndicate members will mean that in most cases you need to comply with the terms of the Managed Investment Act so check thorougly as there are severe penalties for beaching this.
If however you still decide to proceed the probably a Unit Trust structure would work well with a Management Agreement on how and who to the Units can be sold down the track. Again this causes financing issues as the lender may not accept the new Unit holder.
I go back to my original comment about treading carefully.
I have financed a number of small syndicates and havent yet had one which didnt have issues amongst the Unit holders.
Why not start out alone slowly and build from there.
Richard Taylor | Australia's leading private lender
Hi Richard,
Thanks for your quick response.
My thinking is that more ppl can provide more funding for a deposit and I guess you're right about more ppl (too many cooks spoils the broth).
I'm no economist but I know the current economy is sliding with all the global commotion, is it a good time to buy property? Or should i hold on to my savings?
NY
NY
I think it is like anything if you buy right and have a longer term attitude then any time is a good time to be buying.As i said just wouldnt be buying with others as their time perspective may chance at any time and they want out and you are in for the long term.
Remember if the lenders and mortgage insurers didnt think it owuld be the right time to be buying then they would not go to 95-100% as they would be worried that they woul dhave negative equity before they started
Richard Taylor | Australia's leading private lender
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