Commercial Property Syndicates

[murrald]

Hi All


Does anyone have any experience with Commercial Property Syndicates?

There are some that return over 8% with over 90% of the distribution, tax deferred.Borrowing at 7% they are CFP before tax and after tax the returns are quite spectacular.

They seem almost too good to be true!

I know that the large tax write offs mean that when you sell,the written down value of the units is quite small,creating a CGT liability,but if you never intend to sell then this can be avoided.

If no experience an opinion would suffice.

Thanks

Murrald

 

[The Y-man]

The pro's cons for Commercial Property Trusts will hold for these - search for CPT maybe....

Main issues - liquidity - can you sell out if you need money back in a hurry?
Manager stability - what happens if they disappear?

8% Net on 90% tax deferred sounds about low-to-normal.

Is the income paid monthly or paid quarterly?

What types (nad how many) buildings?
What type of tenants?
Vacancies?

Cheers,

The Y-man

 

[APerry]

There is a lot of info on commercial property syndicates on www.gal.com.au, including a free ebook.

Regards
Alistair Perry

 

[Coach B]

There are some that return over 8% with over 90% of the distribution, tax deferred.Borrowing at 7% they are CFP before tax and after tax the returns are quite spectacular.

Murrald,

I'm working quite late so I can't quite get me brain to show me your after tax cashflow.

Could you shoot through a quick spreadsheet...seeing is believing..

Points about quality of assets extremely important for CP like this.

Cheers


CB