Money
Issue No. 6 - July/September 2002
Property Partnership equals Wealth Creation
For most real estate investors, expanding their stake means adding another house or unit to their asset portfolio. For the more discerning investor, the commercial property market has a lot more appeal—the difficulty is access. Commercial property is how many of Australia’s 200 richest people made their fortunes, but it’s hard to make the quantum leap from rental property owner to the landlord of lettable business premises.
One way for smaller investors to make the grade is to cooperate in property syndicates. Each property syndicate—a group of investors—controls an investment vehicle, their property trust. The trust owns the commercial property (there may be more than one site).
Syndicate investors effectively share ownership of a multi-million dollar commercial property, a tax effective and secure investment that wins a high rate of return (as high as 9-10% per annum). Investors also share in capital growth of the property.
South Aus...



