Most of us have heard at least one horror story about a landlord having the tenant from hell.
The trashed place, the unpaid rent, the questionable ‘gifts’ left behind. Here’s just one example from late last year. The staff here at SMSF Property Capital could also tell you a story or two.
Despite this, you still know over the long term, property has received great returns.
Here’s some stats for you, last year property prices across Australia grew by 10.9% p.a., whereas shares have a 5.5% average return over a 10 year period (property is an 8% return in case you are wondering). This means, for many people an investment property may be way to go.
That decision means you are probably taking on another mortgage and hoping the rent and any tax benefits cover the costs.
Who says buying property is the only way to invest in property?
There is a way you can invest in property, not deal with tenant, and possibly get a even better return than 10.9% p.a.
It’s not going into one of those “property syndicates” and buying up in mining towns, it’s not the fad of flipping homes either.
Invest in property development.
Wait, let us clarify. It’s investing in property development without you having to do any of the work. You don’t have to be a builder, tradie or have millions of dollars to get started in property development.
You also don’t have to invest hundreds of thousands of dollars to get that 10.9% return. All you need is $5,000.
Yep. That’s it. $5,000.
You could choose to join forces with the crowd, and put it into a development project. If you choose SMSF Property Capital, you will have a choice of a number of different carefully selected projects.
When you invest in a SMSF Property Capital project, our investors share 100% of the profit.
Depending on the project, you could earn well above that 10.9% – one of our projects has an estimated return of around 30%*, that’s for an estimated 36 month’s worth of work as well. If you choose to go for the Development Income Fund** it returned 10.15% p.a. for 2016 – that’s beating price growth.
But, doesn’t that mean more risk?
Everything in life has risks.
But investing in an SMSF Property development has less risk than you think. We invest in land and property development. In others words, a physical asset – one you can touch and feel.
We use No Bank Debt in our new projects.
Yep, you read that right. There will be no bank sitting in the corner ready to pounce if something goes wrong.
Only investors – just like you.
If you’re a little bit confused, you can check out our model here.
Investing in property doesn’t mean you have to buy an investment property. If you want to learn more about how this works, we’d encourage you to download our Guide to No Bank Debt Property Development available here.
*Based on the Park Avenue Development
**The Development Income Fund has a minimum investment amount of $20,000.