Individual investors are rarely able to afford to invest in high-quality residential property.
Syndication, on the other hand, might allow you to build a large property investment portfolio quickly. For hundreds of years, it has been proven that attractive returns, a diverse variety of choices, and a debt-free purchasing procedure are more efficient.
These are just some of the reasons our investors choose Kunda Group for syndicated property investments.
We make it easy for you to invest directly in well-let residential properties, which may provide you with exceptional profits and a steady income.
5-years investment terms
Kunda Group invests in private and affordable housing through individual and syndicated purchases and/or leases. Producing a high level of rental revenue and capital growth.
Profit from higher returns, group purchasing power, passive income, and hassle free management. Increasing your returns while lowering your risk.
Income security, capital appreciation opportunity
Kunda Group allows investors to choose a specific property investment opportunity in which to invest; hold a defined share of that property pro-rata to their equity invested; participate actively in all key asset allocation while outsourcing routine administration to a highly experienced team of experts.
We presently manage over £5 million in property, with net returns ranging from 9% to 11% after management costs and excluding capital growth for our investors in the previous financial year.
What Is A Property Syndicate?
Kunda syndicates offer investors to profit from collective purchasing power, allowing them to access property that they may not normally be able to afford, and in property that is not always available on the open market. Investors will receive a guaranteed fixed-term rental income as well as a possible capital gain.
Investment Term
Typically, the investment terms are for a minimum of three years. A syndicate member may withdraw their investment before to the conclusion of the term and sell their equity portion to another party if they so want. Details can be obtained upon request..
Your Dream. Our Mission.
Fixed future cash flow of 9-11% yield
Each syndicate’s investment strategy, term, and target returns are outlined in the accompanying investment memorandum. Our goal is to provide an annual income return of 5% to 7%. Rental payouts are typically made on a quarterly basis.
Over the course of the syndicate’s investment period, a capital gain of around 9% – 11% each year is expected.
Purchasing at a price below the typical market value contributes to capital gains in addition to those linked with medium to long-term property investing5
Benefits of property Investment
The benefits of investing in real estate include passive income, stable cash flow, tax advantages, diversification, and leverage.
Why use a Syndicate?
- Enables investors to spread risk over several properties
- Enables smaller investors to actively participate in larger and better properties
- Quick to set up
- Low start-up costs
- Low running costs
- Privacy – information not in the public domain
- No front end deduction fees, annual asset value fees, early exit penalties or profit-sharing fees
- Higher returns because of low costs
- Suitable for a variety of investors
- Participants taxed according to personal circumstances
- Non-recourse finance available + no personal liability
- Direct property interest acquired therefore a ‘tangible’ asset
Portfolio Diversifications
Another advantage of property investment is that it may be used to diversify your portfolio. The link between property investment and other main asset classes is modest and in some circumstances negative. This indicates that adding real estate to a diversified asset portfolio can reduce portfolio volatility and increase the return per unit of risk.
Build Equity and Wealth
Paying down a property mortgage builds equity—an asset that’s part of your net worth. And as you build equity, you have the leverage to buy more properties and increase cash flow and wealth even more. By paying off a mortgage on a home, we generate equity, which becomes a portion of the syndicate net worth. And as the equity grows, we’ll be able to use it to acquire new properties, boosting your cash flow and wealth even more.
Property Leverage
Leverage is the use of various financial instruments or borrowed capital (e.g., debt) to increase an investment’s potential return. A 20% down payment on a mortgage, for example, gets you 100% of the house you want to buy—that’s leverage. Because property is a tangible asset and one that can serve as collateral, financing is readily available.
Inflation Hedge
The strong connection between GDP growth and property demand gives property investments the capacity to hedge against inflation. Rents rise as economies grow and demand for rental properties increases. Higher capital values result as a result of this. As a result, property tends to keep capital’s purchasing power by passing some inflationary pressure on to renters and integrating some inflationary pressure in the form of capital gain.
In a nutshell...
Despite all of the advantages of property investment, there are some disadvantages. One of the most significant is a shortage of liquidity (or the relative difficulty in converting an asset into cash and cash into an asset). A real estate deal might take months to finish, unlike a stock or bond purchase, which can be done in seconds. Even with the assistance of a broker, finding the proper counterparty might take several weeks.
Property investing, on the other hand, is a different asset class that is easy to grasp and may help an investor’s portfolio’s risk-to-return profile. Property investment on its own provides cash flow, tax benefits, equity growth, competitive risk-adjusted returns, and inflation protection. Investing in real estate might also improve your financial situation.
cashflow is king
The net income from a property investment after costs is known as cash flow.
Property investing has a number of advantages, one of which is the capacity to produce cash flow. As we pay down the original investment—and build up your equity—cash flow often improves over time.
Frequently asked questions
What you should know
Below you will find the most commonly asked questions by current and previous investors
What is the investment plan?
The investing strategy aims to maximise investment returns while minimising risks. It does this by acquiring property at a low relative to market value; in an area with a scarcity compared to demand in sales and lettings; and providing a consistent rental income with the opportunity for capital appreciation.
The primary goal is to achieve a private investment in affordable housing. Tenants who have a private tenancy are checked to ensure they have a solid tenant history. If the tenancy is to a Housing Association, we approach the appropriate Housing Association before to purchase to get an expression of interest, ensuring the seamless flow of the tenancy by the Housing Association following the acquisition and completion of the property.
What legal documentation will I get to verify my ownership?
Kunda Groups solictors will handle all parts of the legal work in setting up the syndicates and buying and selling properties within the syndicates, as well as providing legal experience in handling the acquisition and sale of the property. Upon completion of the acquisition, members will receive a share of equity’share of title’ as legal proof of their shared ownership of the property.
Will I be able to obtain rental income statements?
Syndicate members will get quarterly statements showing the income and any associated expenses throughout the investment term.
Is it possible for me to lose more money than I invest?
There is always an element of risk in any investment. We take precautions to reduce risk by acquiring a fixed-term lease contract and utilising our in-house management team. Investors have no personal liability, which means that the worst-case scenario is that the investor’s loss is limited to the initial investment.
The property will be sold at the end of the investment period, which is normally a minimum of five years. It’s possible that the property is worth less than what you paid for it. This is improbable, considering that the house is often purchased for less than the market value, and UK residential property values have traditionally grown in the medium to long term. We anticipate that, in addition to obtaining an
Liquidating or Exit of investment
A syndicate member may sell or transfer their interests to anybody within the syndicate they choose.’ A holding can be sold or transferred at any point during the Syndicate Member’s ownership.
A value must be agreed upon, but the transfer of the holding share is normally accomplished within two or three weeks, providing significantly better liquidity than is available in the direct property investment market.
Kunda Group will coordinate and help in the sale of a syndicate stake by marketing it to its approved clientele. For this service, an administration charge of about £450 + VAT (including all legal papers) is due.
There is no recognised secondary market for the sale of a share obtained under these arrangements, other than among other syndicate members and Pi’s customer base, and there can be no certainty that a holding will sell. As with any property, values can fluctuate at any moment and are affected by variables such as economic conditions, tenant covenant strength, and the duration of the lease remaining.
What are my tax implications on my earnings
Investors must submit income to HMRC via their Self-Assessment return since it is distributed without tax deduction (gross). The profits of a sale are liable to Capital Gains Tax, which must be disclosed again on a person’s Self-Assessment return.
Are you FCA regulated?
Kunda Group is not regulated by the Financial Conduct Authority (FCA). The advantage of syndicate ownership is that members have direct ownership and control of their asset, as opposed to many investments, which are done on their behalf on a discretionary basis.
Capital is at stake
Your investment’s value might decrease as well as increase. The performance information (including any expression of opinion or projection) is based on the most current data available at the time of publishing and is prepared in good faith using publicly accessible data or sources deemed to be credible by Kunda Group. Past performance and/or projections (where applicable) are not indicative of future performance. Interest and capital gains may be less than anticipated. Rent, dividends, and capital growth may be less than anticipated. Exiting your assets prior to the 5-year anniversary process or using targeted techniques is price and demand dependent. Kunda Group does not give tax or financial advice, and any general information supplied is intended to assist you in making your own educated decisions. Where required, customers are urged to seek suitable tax or investment advice. Additional information is available under Key Risk
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