Syndicates
These are most commonly found as a means of investing in commercial property.
Investment is offered as a package which includes financing and property management. Very often, the property is sold after a relatively short term and this may mean no income return to the investor in the interim if the purchase has been financed;
The introductory fee may be expensive.
Property, especially commercial property, tends to be more difficult to realise and comes in larger ‘units’ than many other forms of investment such as stocks and shares.
Investment in a particular property, without having the means to purchase the whole ‘unit’: Some property agencies will provide the means to join a property syndicate. This allows you joint ownership of returns and liabilities as well as the residual value of the property.
The important questions to ask in relation to these arrangements are:
- what are the total costs on entry, ongoing and exit?
- how easy is it to dispose of the share on retirement, death, on transfer to another member of the scheme or any other event?
what services are provided by the agency for administration, legal and tax purposes?