Image Property Syndication Program (PSP) provides a unique and affordable vehicle for everyday investors to become involved in a property development from a base level and effectively wear “The Developers Hat”.
Our (PSP) therefore enables each member to acquire property at below current “retail” prices and retain the profit margin as part of the equity in that property.
Although the concept of property syndication is not new, we believe our system works best and provides safeguards to ensure the protection of each members investment.
The collective experience and professionalism of our associated professional groups which include builders, designers, town planners, surveyors, financiers, accountants and solicitors has culminated into many successful projects over the years. To help you ascertain the nature and quality of these projects please ask one of our friendly consultants who will gladly provide the details of a development nearest you. In order to proceed with being accepted into a syndicate, all applicants must be financially qualified by one of our team members. Our office can arrange for an in house assessment at a time most convenient for you.
Available for your perusal, is a flow chart detailing the mechanics of our property investment concept.
Build wealth upon the very foundations that you help lay.
Step 1- Syndication Structure
A Unit Trust Company is set up in the names of all syndicate members. Share holdings of the company are issued as per the percentage of ownership within that company by each shareholder. – Members elect a Director(s) of that Trust company.
– NB: Members using Superannuation funds as part of their interest in the company can not be nominated as a Director of that company.
Step 2- Funding
Each unit trust holder is responsible for providing a cash investment combined to equal 30% of the total development costs. These funds can be contributed from personal savings, secured funds, personal loans, superannuation funds or a combination of any of the aforementioned.
– NB: Members using Superannuation funds must have a self managed Super Fund set up. Our professional associates are able to assist with the set up of such a fund upon request.
– The balance of funds (70%) are borrowed against the security of the subject property by the trust company. The approval process can be achieved without the lenders request for financial statements or proof of serviceability documents.
Step 3- Acquisition
The unit trust enters into a contact of sale for the purchase of the land, signs building contracts and specification for the construction of dwellings, subject to and conditional upon finance approval.
– A deposit equal to 10% of the land purchase price is paid to secure the site with a further 5% of the construction costs paid to the builder as per building contract. The deposit monies are derived from the 30% invested in to the company trust. The balance of the 30% is used to fund land settlement.
Step 4- Sales & Marketing
Upon building permits being granted for the commencement of construction, the dwellings are listed for sale through Image Real Estate at the reserve price as set out in the property report provided to each syndicate member prior to enlisting. Selling documentation i.e. : Contract of Sale is prepared by the acting solicitor.
– At this point any member choosing to retain a particular unit within the development is able to do so simply by signing a contract of sale for the subject unit. Members choosing to retain a particular property must either amicably decide on what property each member is to retain or go in to a ballot system that decides the selection order. A member is able to purchase more than one dwelling from the development only once every member has had the opportunity of retention.
– An advertising schedule is prepared and implemented to initiate sales on remaining dwellings.
Step 5- Loan Serviceability
Funding to provide for interest repayments during the construction period, is included in the development costs and will be deducted by the lender as required from the loan account.
Step 6- Settlement
Upon completion of the construction, individual titles are issued for each unit with settlements taking place by the new purchasers. – Profits are distributed to shareholders. – The trust company is dissolved . – Look into next venture.