Achieving financial freedom is something that we all aspire to. It requires planning, education and receiving informative advice from professionals. There are many ways you can build wealth, however which is the right path for you?
Property investment, particularly in Australia, is a stable and secure source of building wealth. In a strong market, you will see steady capital growth and rental income. While acquisition costs are considerable, the long-term benefits far outweigh these. Building a balanced property portfolio allows you to reduce holding costs.
One of the many benefits of property investment is tax deductions. Some of the items that are tax deductable are:
- Interest on loan repayments
- Purchase costs
- Accounting fees
- Property Management fees
- Repairs or renovations
- depreciation
This is extremely beneficial as reduced taxes mean more available cashflow for further investments.
If you are a first-time investor, it may not be possible to purchase a property on your own either due to low deposit savings or insufficient income. However, there is an alternative way to enter the property market sooner and build your wealth – Property Syndication.
~Novel Serialisation: Heavens Fire~
Property Syndication involves getting a group of individuals together (usually 2-5) to purchase a property for investment purposes. The finance, accounting, legal and property management aspects are arranged by a single company, which streamlines the process and makes it hassle-free for clients.
A summarised overview of the process is as follows:
- A property company brings together a group of individuals interested in purchasing an investment property.
- Legal structures and agreements are set up for all purchasers.
- A suitable property is sourced and finance is arranged.
- Upon settlement of the property, Property Management is set up.
- Ongoing property ownership activities are carried out, including book-keeping, accounting and annual reviews.
While partner services such as Accountants and Mortgage Brokers are used, the property group oversees the whole process to ensure everything goes as smoothly for you as possible.
As the value of the property grows, it increases your equity. When you are in a position to purchase a property of your own, or invest in other assets, you are able to sell your portion of the property, take the profit and use it as you see fit.
This is a fantastic way for people with lower borrowing capacity, new investors or people who want to diversify their property portfolio to enter the property market.
For more experienced investors, or people with the capacity to do more, Property Syndication allows you to invest in multiple properties in different markets to diversify your portfolio.
Is this something that may be suited to you? Find out more about this game changing way of building wealth and achieving financial freedom.
By George Rodman
About the author
George Rodman is here to do one thing – help people achieve financial independence.
After watching a single mother struggle financially his entire life, George knew he wanted to help people have homes to call their own, reach some level of financial security, and to be in a position to help their children to have a home of their own.
He developed a love of property early on. George loved every aspect of – inspecting different properties, looking at floor plans, going to auctions and studying how the process works. George realised that property is like a game with its own rules and strategies, but unfortunately, in this game some people couldn’t even get a place on the board.
After 15 years of being in real estate and mortgage broking, George started Quicksilver Projects to bring sound advice and professional knowledge to the table to help everyone invest in property and create financial freedom.
www.quicksilverprojects.com.au
A very clear and concise explanation that could suit many would be investors! Thanks George, a great outline of a solution for a very pertinent issue.
Interesting read, sounds like a good option for first time buyers. Something to consider!
Very thorough and informative!
Amazing article..very interesting!
Great read!
Great article. Very informative read!
This is an exciting development in the word of private investing. I’d like to hear more about how you see this developing over the coming years, and what impacts you foresee this having on the industry.
Great article. Property syndication sounds like a viable strategy for the younger generation wanting to get a foot into the property market. It feels like it’s getting to the point where property is become unaffordable unless you want to live far out of the city and compromise quality of life so this is a great way to still have opportunities.
Interesting read! Didn’t even know syndication was an option
I can’t believe I wasn’t aware that interest on loan repayments is tax deductible on investment properties. That changes the proposition immensely. I’d have never know if I hadn’t found this article.
L
Fantastic Read… Very thorough
I love property and had no idea this was an option. Helpful when your borrowing capacity is capped.
Hmm?!
What the draw backs?
In terms of borrowing capacity… do u ou own 100% of the debt for future borrowing or the portion of the asset you own?
Hi David,
For this to be viable, you would need to maintain your share for at least 3 years. Some people may find this a drawback, however the goal of property investment is to hold on to the asset long-term.
With regards to the debt, while your contributions are based on your share, lenders will differ in how they assess your future borrowing. It is a matter of their lending policy, so you would need consult a Mortgage Broker or lender to provide you an option suitable for your circumstances.
Property sydicatation is not something that I have widely heard about, but in essence seems like a viable strategy for many people in this current housing market. It is something that I will be keeping in mind as an option for future investments!
Novel approach to purchasing
Great for first time investors
Novel approach to purchasing
Excellent for first time investors
I think this has a great potential. In another 10 – 15 years it will be close to impossible to buy a property on your own. This may be the only option for most people to get into the property market.
I considered property investment would be unachievable for many, however I never thought about property syndication. This was a very helpful article and has me considering options.
Great article! Love the summary – very informative but understandable!