Low interest rates have people looking around for alternatives. Property Syndicates have become a popular way to eke out a better return on your money. But there are fish hooks. We explore some of the things you should consider when deciding if a Property Syndicate is right for you.

With low interest rates it is not surprising that many of us are looking for ways to get our money working harder. Property syndicates look like they might be the answer. They typically forecast attractive pre-tax cash returns of between 5% and 7%. They offer regular monthly income distributions. And they are backed by property, a tangible asset you can touch and feel.

Unfortunately it’s not that simple. There are fish hooks you need to be aware of. Syndicates are often propped up with high debt levels, the apparently attractive up front returns might not be sustainable and they can be hard to sell when you want your money out.

Just to make it even more confusing not all syndications are created equal. Careful research is required.

What is a Property Syndicate?

A typical property syndicate is where a property fund manager purchases an individual property, and then on-sells it, divided up into smaller interests, to multiple investors. Typically these syndicates are targeted at retail investors …

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