Yet, there’s a whole other side of property investing that might be up your street if you’re serious about making money from property, as an investment, rather than having a few residential properties that are treated like hobby projects.
This other side, referred to within this article is that of the commercial property investment market. Investing in corporate buildings such as shopping centres or office towers can provide a great return on your investment with potentially lower risk than that of residential properties.
The further benefit is that in many ways you can sit back and relax, whilst you watch your capital appreciate (ideally) without having to get your hands dirty in the context of property management or maintenance.
See, when you start investing in real estate syndicates you don’t have the hassle of all the hands on stuff associated with residential property development. You are literally allowing your money to work for you, rather than you having to work for it.
The value of a commercial property has a tendency to increase over time and therefore, it is likely to provide a steady source of investment income. Furthermore, if the economy slows down or begins to crash you are less likely to experience huge losses, meaning commercial property tends to be lower risk than a residential property.
The question you might be asking, at this stage, is how do you invest in a commercial property such as a shopping centre when you don’t have the million dollars required to buy-in to most projects.
This is where real estate syndicates come in. Essentially these syndicated enable ordinary investors to access the investment opportunities offered within large-scale commercial properties.
The benefit being that they enable investors to diversify their property portfolio by leveraging the commercial property sector; using the power of the group – rather than one individual.
Since commercial properties tend to be more expensive that residential, not everyone has access to the funds required to play at that level. Yet, syndicates help individual investors to gain access to investing in commercial projects that they would otherwise be unable to.
Here are some of the benefits to using a real estate syndicate.
1. Save Costs
In pooling financial resources with other investors you can invest in profitable properties that are within your budget, and save costs when purchasing as a group.
2. Save Time
A property syndicate allows you to share the standard time intensive tasks of sourcing properties and dealing with administrative issues – meaning you’ll save time, and also mitigate risk.
3. Diversify Your Portfolio
Many property investors understandably stick to what they know, yet the best way to make a money as an investor is to diversify your portfolio, and investing in a corporate property might be one of the best ways to do this today.