Investors
Property syndication - frequently asked questions.
The opportunity for ordinary people to enter the property market is becoming increasingly difficult. However, people still want to participate.
Syndicated ownership allows two or more individuals to own a fractional, or shared, interest in a property. An example is where two or more (unrelated) investors wish to purchase a property. Each ownership share is recorded by the land titles office as a tenant in common percentage share. Each investor holds a separate and distinct share.
Benefits are:
- Lower entry costs to residential and commercial property investment
- Gives the investor direct title for the fractional percentage share held
- Borrowings can be negatively geared
- Can be willed, sold or mortgaged separately
How many owners can particate in the one property? Up to twenty retail investors and unlimited wholesale investors. Each co-owner receives their own title deed and enjoys the same rights as a sole owner.
Tenants in common is the only holding which allows owners absolute control over who would receive their fractional ownership share upon death.
Investing in a syndicated property can provide secure monthly income, stability, and appreciation, without the management burden.
Can a fractional owner occupy the property as lessee? Yes. This would provide the other non-occupying owners with a long-term tenant (lessee) who highly unlikely to mistreat the property, at the same time, giving the lesee greater security of tenure.
Who manages the property on behalf of the tenant in common owners? It is intended that Property Syndicators will provide the complete range of property management services.
