A small property syndicate case study: Your Investment Property magazine

2012 November 17
by Tim Riley

Ever wondered about buying property with friends or family?

In this article that was published in Your Investment Property magazine, I provide an example of how this arrangement might work, particularly focusing on how the flow of money would work between the syndicate partners.

 

In this case study, four friends decide they are going to set up a small syndicate of which they will each hold a 25% share. Their objective is to buy two properties over 12 months and hold them for a minimum of 10 years.

The article details how much they would all need invest and how much they could make, based on some key assumptions.

The results, while not spectacular, show how a conservative property strategy can make solid returns for each syndicate partner with a minimal upfront and ongoing capital investment. In this case it cost each partner $5,950 per year or $114 per week to run their small syndicate for 10 years…

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