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In For The Long Haul: Commercial Property Syndicates and Long-Term Capital Gain
Monday 2 July 2018, 1:54AM
By Beckie Wright

Capital gain is essential to any diverse investment portfolio, realised when capital assets are sold at a higher worth than the purchase price. While it’s generally associated with stocks and funds, commercial property syndicates have the potential of both capital growth and capital gain. People who stay in property and syndication aren’t in it for the short-term, they’re in it for the long haul.

Commercial property investment continues to play a crucial role in building successful, diverse portfolios for savvy investors. As most commercial properties cost more than $2 million to acquire, property syndicates provide opportunities for more people to invest in high-value commercial properties.

Syndicates are administered by experienced and professional acquisitions and asset management teams. They pool together investment parcels of generally $50,000 from each investor to purchase the commercial property. This allows investors to distribute their wealth, as well as the investment risk, while being able to add multiple commercial investments into their portfolio.

Property syndicates generally offer great pre-tax return rates – anywhere from 7% to 11% – and are paid monthly to each investor through sharing rental income and capital growth.

Over the years, if well-managed and executed, commercial property values appreciate. Upon sale of a property, investors may receive a return greater than the original $50,000 paid for each parcel, on top of having already received monthly returns prior to sale.

However, commercial property syndicates are not something you would invest in for a short timeframe – investors are generally in it for the long-term capital gain realised over the years, providing a secure cash flow.

If you’re looking to invest in New Zealand commercial property, the Maat Group offers commercial property syndication investment opportunities. Each purchase opportunity is thoroughly researched and analysed before being offered for syndication.

View their current offers and property syndicate portfolio on the Maat Group website at INDEX