What does a property investment group do?
A property investment group, much like a property syndicate or property trust, pools investor capital together and invests it in one or multiple real estate assets. The managers of the property investment group will oversee your investment from beginning to end, covering several distinct phases:
- Strategy and planning
- Acquisition and negotiation
- Due diligence
- Property management and lease negotiation
- Rental income distribution
Why invest with a property investment group?
The major phases of property investment, particularly with the complexities of commercial real estate investment, mean the process is sometimes best left to the professionals.
Access to a network of top property professionals
Imagine the best in the business, from leasing agents to vendors to CEOs of major businesses (i.e. potential international or national-branded tenants) just a phone call away. And not spending years and years building relationships with them.
An experienced property investment group will have access to the industry’s best. And by investing alongside, you can share that access.
Go after bigger, better property
The major tick in the box for investing with a property investment group, is that you can go after big ticketed property.
An investor’s budget is usually capped at what investment amount they’re able to outlay for the property purchase and their financier’s willingness to support them. For an individual, this typically means investing in a single real estate asset – either the average house on the street or a ‘mum-and-dad’ storefront, if talking commercial property. The problem with these small investments is that they can provide only small returns.
Instead, pooling investment funds with like-minded investors gives you access to bigger, better property. “Big league” property, if you will. And this translates to much better returns because, for example, a larger international business is going to pay much higher premiums for high-quality commercial space than a small operator would for a typical storefront.
Set and forget
Want more time with the kids or grandkids? Dreaming of longer days on the golf course or on vacation? Well then, investing with a property investment group could be for you.
The on-boarding process is simple for many property investment groups. You read over the Information Memorandum (IM), assess your financial position with the help of your accountant or financial advisor, commit your investment, and then sit back while your money works for you.
While you sleep, while you work, and while you’re on vacation, your investment will be growing.
Proven track record translates to better returns
There’s a good chance a property investment group has invested decades more time than you into hunting and acquiring high-quality real estate.
Their extensive experience researching, investigating, managing and selling property means the investment group is likely to have found all the blindspots and understood all the pitfalls of property investing. And this, in turn, typically translates to bigger and better returns than you could otherwise earn on your own.
The property market moves in cycles. And these cycles can go for years, even decades. To understand what is likely ahead of the property market, just by noticing the trends of years past, is as close to a crystal ball as any of us will ever have. Property investment groups have this magic up their sleeve. Why not leverage it?
What returns to property investment groups provide?
Property investment groups which specialise in residential property, typically provide annual yields of 2% and 4%. There is opportunity for capital growth when the property market improves, or when the managers of the property group gets their hands dirty and adds value to the property.
Commercial property investment groups provide much higher annual yields of between 5% and 8%, and sometimes even higher. It’s little known that commercial real estate investment can provide huge capital growth on investment, especially when the property is purchased well and the area is likely to increase in relevance and demand.
We’ve provided investors with annual cash returns of over 8% and capital growth of up to 50% on their investment .For more information on investing in commercial property alongside us, ask us for an Information Memorandum for our latest investment.
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