Investing with successful property groups

Beyond looking at the returns they offer, your first goal should be finding a property investment group with the right history of success, proven strategies and results, a solid team of experts and evidence of clear, consistent communication with their investors.

If investing in a property group, you might discover they provide property investment syndicates, which allow individuals to pool resources to invest in properties that would typically be out of reach for a single investor (often commercial or high-value residential projects with promising returns). Let’s first explore why this is a good thing.

Why consider a syndicate?

Syndicate investing can offer a way to spread risk, share costs and gain access to larger, potentially more profitable properties than you might be able to achieve alone. By pooling funds with other investors under the guidance of a professional property group (with proven success), you can gain exposure to premium properties—in both the competitive residential space and complex commercial real estate market—managed by industry experts.

But what exactly makes a property group successful, and what should you look for when considering syndicate investment? Here’s a breakdown to help you navigate these options.

Key criteria for successful property groups

1. Established track record

The top property investment groups have proven histories of delivering consistent returns and managing diverse property types. Look for groups with a record of well-timed acquisitions, developments and sales, especially during times of uncertainty.

If, for example, their portfolio performed well during the pandemic, then you’re off to a good start.

2. Clear investment strategy

Successful groups have a clear investment strategy that they can communicate simply, from the type of properties they target (e.g. residential, office, retail or industrial) to their approach to property management and growth.

3. Transparency and communication

Property syndicates rely heavily on earning your trust and providing you with clear information. Look for groups that prioritise transparent reporting, regularly update investors and clearly outline each syndicate’s goals, timelines and risks.

As we’ve always said, our investors are co-owners in the property, and they should be afforded access to information many property groups deem too confidential to share.

4. Risk management expertise

The real estate market has its ups and downs, so it’s crucial to work with groups that have a proactive risk management approach. This includes choosing well-researched locations, managing cash flow efficiently and maintaining strong tenant relationships. The latter is key, particularly in commercial real estate investing. The tenants, after all, are your partners in the asset.

5. Experience with syndicates

Not all property groups are skilled in managing syndicates. Experience in handling pooled investments and understanding how to meet the varied needs of multiple investors is essential. Ensure they offer regular distributions, timely reporting and a clear understanding of the tax benefits and implications of investing in a Unit Trust.

6. Pathways to diverse properties

The best groups offer pathways to different types of properties, allowing investors flexibility as their portfolio grows. Whether you’re interested in commercial real estate, new developments or well-established assets, a successful property group will likely provide options suited to different investment goals. The same goes for your return preferences, whether cash flow or capital growth forms part of your investment objective.

How to get started

If you’re considering investing with one of Australia’s most successful property groups, take the time to explore their performance histories, their values and their examples of providing transparent information to their fellow investors.

The right property group can help you diversify and grow your portfolio, making property syndication a rewarding route for investors who want to broaden their reach in real estate.

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