Yes a new concept in property has just arrived & it is worth a serious look.
The problem we have with so called investment property is that there is a huge loan & you must take advice from the professionals who flogged this concept to him.
We are very aware as we have been offered the 25,000 & never taken on selling a new house.
We were introduced to this new concept at our recent Professional Development day.
What is Fractional Property Investing?
It appears to us to be a version of 'crowd funding'.
The Kidman Station which is for sale is being considered using this concept.
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I.e. You & other investors who maybe your contacts decide to invest in a property which maybe commercial or retail or residential or industrial.
There is an ASIC approved book build process to facilitate the initial property purchase.
You choose who will be your property adviser to advise on the initial property.
The property is managed by independent accredited property managers who are paid out of the gross rent. They arrange tenants, maintenance & rent collection.
As we are all aware property is a larger sum than many have. i.e. 500,000 to 1 million or many millions.
An 'investor' who does have that in house equity but then risks of increasing rates or no tenants west of anywhere or loss of his income to meet the negative cashflow is only casually mentioned.
His house equity can disappear in a very over priced market & in his case over valued property.
Remember at least 8% of all property is sold at a loss even before the high costs of selling.
in fact at a 'property investment seminar' last week we heard Nic the speaker state that
he most often buys from negatively geared investors who have to sell because of redundancy or other reasons.
he offers 20% less than house valuation.
Most should not & can't borrow because the family needs to live but he wants real property & not listed REITS.
I.e. direct property without borrowing.
The solution is investing into a first ever segregated property trust where each property is contained within a sub fund.
One of the biggest drawbacks to unlisted or real property is it is NOT liquid.
I.e you cannot sell off the back steps if you have a sudden need for funds.
However this concept has a secondary market of other unit holders or other investors as it has 'make a market' Authorisations.
These sub funds have 5 year terms & requires a 50% vote to renew.
At any time unit holders can vote to wind up a fund & that requires a 75% agreement.
Then there is all the outsourced due diligence & administration done on behalf of investors. There is a simple end of year reporting process.
The fund is low cost compared to the alternatives i.e. 0.8% on property & 0.2% on cash.
Ok that is an introduction to a new concept to property investing.
I.e. investing without the need for any borrowing & with better liquidity without the risk attached to listed property trusts.
We comment that it is now on our Dealer's Approved List.
ie do you want a part of the Kidman station or other rural properties as they come onto the market?
If you want to know more then 'you know what to do' as a client's voice mail says.
You could check this you tube vision out.
otherwise if you want top tips for retirement Read more
We believe that we can generate significant financial certainty for you throughout our relationship & importantly add substantial value to ensuring you achieve all that is important & valuable to you as you have articulated to us.
If we were to sit down in three years time & looked back what do we need to do today so that you are financially & personally better off & happier.
As Peter & others do call us on 07 3848 1088 or This email address is being protected from spambots. You need JavaScript enabled to view it.or visit our websites.
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