Buying Syndicates Can Bring Benefits

Many people purchase property with their life partner, but it is less common to jointly purchase real estate with other family members, friends or colleagues.

However, these arrangements, if entered into with the ‘right’ people and structured correctly, can offer a number of benefits, particularly in respect of strata blocks sold in one line (ie blocks of strata apartments sold together). These include:

  • Greater purchasing power, which may give you access to better investments and/or a less competitive price point. Your combined purchasing power will offer you more and potentially better investment options. In a strong market, higher price points can often be less competitive for buyers than lower, more accessible price points. For example, buying with others may place you in a position to purchase a block of apartments as compared to a single unit, with all the benefits this entails.
  • If you are able to purchase a strata block, you will often acheive an immediate discount on your purchase as distinct from purchasing a single strata property in the same block.
  • Puchasing a strata block gives you control of the property and makes it easier to make improvements to your investment, including common property (ie your group will have full control of the building’s body corporate).

Strata blocks provide the ideal investment opportunity for buying syndicates because the purchasers can structure the arrangement in a myriand of ways to reflect their contributions and/or needs. For example, a group of four people who together purchase a block of 12 apartments, may choose to take ownership of three apartments each and even request that the contracts of sale reflect this arrangement. This minimises the potential for disagreements down the track because each party has separate ownership of his or her portion of the block and can dispose of that interest as and when he or she chooses.

If you’re looking for an investment opportunity that may suit a group buying situation, don’t miss 117-123 Bronte Road, Bondi Junction – an outstanding strata block of 12 apartments and one shop to be sold in one line. The block will be auctioned on Tuesday 2 December 2014. Click here for further information on the property.

117-123 Bronte Road, Bondi Junction
117-123 Bronte Road, Bondi Junction

Hart Estate Agents is a dynamic, results driven real estate agency specialising in Sydney’s eastern suburbs. Principal Alex Hart leads an experienced and tenacious sales team. Click here to join our Exclusive Buyer Database. Click here to receive our real estate news and listings straight to your inbox.

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