Investing in Property

Investing in even the most basic property now will often require you to go into significant debt, usually bringing the family home into the equation as security on the loan.

We are investigating the opportunity of pooling funds of investors to invest in residential homes and units - fully invested no debt. This would provide a positive income to investors (often with a significant portion tax deferred) to offset against any borrowing cost they may have. You would be investing with between 10 and 20 other individuals via a private unlisted unit trust. The investment time period would be about 8 years - when all unitholders would have a chance to determine whether to sell the property or continue to own it.

If the interest is there we will look at both ungeared and geared trusts.

WHY?

• Only have to come up with between $15,000 and $30,000 to invest (can be borrowed funds).
• Less investment risk, as you can do this a number of times and have exposure to many more properties than you would be able to do on your own without having to take on the huge levels of debt required to establish your own property portfolio.
• Ability to access higher priced properties than you would invidually.
• Benefit from the longer term capital growth possibilities.
• Have an asset to assist funding lifestyle in the future other than your house and a bit of superannuation.
• Benefit from the ability to use tax deductible debt to buy in without having to have your house secured in its entirety.
• Benefit from better investment diversification - not all eggs in one basket.
• Puts accumulation of wealth rather than accumulation of debt as the main aim of investing.

Property and shares both have the ability to increase in capital value over time. Money in a term deposit doesn't, it actually decreases in capital value in real terms due to inflation. Especially if you spend all the income.

Email me at empire@lips.net.au to express interest in this opportunity.

Regards

Damian Ebzery B.Bus M.Bus AFPA ASA