The dirty secrets property syndicate managers don’t want you to know!
Property Syndicates have become popular worldwide, but they are not all equal. Each has a defined proposal and time frame (or should have). Here is an Australian analysis showing what to watch out for. I hope to enlighten potential investors about the tricks used by property syndicate managers to ‘window dress’ their performance. Some of these tricks can be backed out, and where possible, I have provided the math below. Before we begin, let’s define and recap the role of Index Funds ( REIT). Index Funds…
Are Performance Fees Fair for Syndicate Investors?
The Argument Against Performance Fees If fund managers and syndicate managers do not outperform their benchmark, they continue to get their standard fee, even if they have to forego their performance fee. We like performance, but we do not like performance fees. There are fund managers, who charge a fee for management, but then on top of that, they charge another fee if they get returns above a certain level. We object to these “performance fees”. Some fund managers will say they should have a performance…
Entering South America – 7 Essential Tips to make your life easier
Our top tips are based on our experience assisting hundreds of companies enter the Latin American Region and are directly relevant to many of the legal and operating issues which you are likely to encounter. Understanding the different issues will be the difference between a successful entry or one that is filled with stress and problems. Tailor your Company’s constitutional documents
A company’s articles of association set out the formalities relating to the composition of the board of…
Brazil is an Agricultural Powerhouse
Brazil is the world’s largest producer and exporter of sugar, coffee and orange juice, as well as the largest exporter of beef, soybeans and poultry. One in four grains consumed in the world is produced in Brazil. More than 5 of every 10 glasses of orange juice drunk worldwide come from Brazilian oranges. Brazil’s beef cattle herd is 8 times the size of Australia’s. Brazil’s rise to agricultural superpower status has been underpinned by rapidly increasing efficiency in utilising production factors,…
💰Top 10 Factors Affecting Estancia’s (large farms) Value
The valuation of an Estancia and finding the price per hectare is substantially different than other types of real estate. While residential and commercial real estate prices typically rely on data based upon numerous transactions within a defined market area that can be defined as “comparable sales,” most Estancia sales are not published on any database, and there are relatively few transactions that close within a two-year time frame, and there is no defined market area. Due to the uniqueness of ranches,…
A New Real Estate Marketing option for Independent Brokers and Vendors
We offer an option for independent brokers and private Vendors to market their Residential real estate or Agricultural related businesses for sale outside their home location. For nearly 20 years, GTSA – Marketing has been marketing individual properties or projects for vendors and independent brokers without being involved in the sales process. This is in response to the effects of disruptive technologies available to sellers. We did this where we had no licensed sales support in the area or region and/or…
Technology and its disruptive impact on the real estate industry
What is the transformative impact of technology for real estate brokers? “Real estate agents will not be replaced by technology …. they will be replaced by agents with technology.” – Peter Williams – CEO of Deloitte Digital The principle here is that the real estate industry is not in imminent danger of being replaced by a single technology solution that completely disintermediates the process and makes the agent’s role obsolete, but rather that the transformations in the industry…
Trends in allocations to Farmland investing with a Global Perspective
SOUTH AMERICA • Successive years of low commodity prices, over-leveraged balance sheets, and drought in the northeast have left many farmland assets in Brazil and Argentina searching for new investors. While current restrictions on foreign ownership limit opportunities for large-scale foreign investment, this could change once drafted legislation is enacted. Read the full article here. Farmland-Investing Contact the Gateway to South America team to learn about the best investment opportunities in the region.…
The disruption Facebook is having on traditional real estate advertising
The real estate industry has always had a love-hate relationship with the portals such as zonaprop, argenprop , gatewaytosouthamerica.com etc. While the portals own the best audience for property buyers – and are therefore an important part of any vendor’s marketing spend – the charging models and sense of dependence have always irked independent agents. No one likes being obliged to pay for a service you feel you have little control over. But the portals and the technology that drives them are now…
Real estate uses will dramatically change in the next decade if not sooner.
The future of real estate will be influenced by disruption technology as people change how they shop, travel and even grow their food, a world-renowned professor of real estate says. At an international property conference, San Diego University professor Norm Miller said the technological innovations coming, from self-driving vehicles to AI and robots, alongside demographic trends, will cause dramatic changes in real estate, and it’s not a matter of if but when. “Ten trends will change real estate as we…
The future of food in South America
The future of food in South America is uncertain because high-quality food will be grown anywhere in the world with the lowest input cost. The leadership of agriculture and food exports in South America is an achievement of generations and now yields its best harvest. This continent has a most conducive climate for producing high-quality food, as well as exceptional soils, thanks to the volcanic ash of the Andes, accumulated over millennia. All these factors, coupled with hard work, the application of research…
KIWI REAL ESTATE ENTREPRENEUR LOOKS AHEAD
New Zealand Real Estate’s loss was South America’s Gain Argentina – Brazil – Chile – Paraguay – Peru – Uruguay The Kiwi, New Zealand’s flightless, myopic national bird, is so shy and elusive that most New Zealanders have never seen one as it never leaves the remote forest floors where it lives a solitary, nocturnal life. They are so few in number it’s one of the world’s rarest birds. You’ll never see a Kiwi itself outside of New Zealand. Still, on occasion,…
Why did the the War of the Triple Alliance (Brazil, Argentina, and Uruguay against Paraguay) happen?
Paraguay, unlike Uruguay, had a thriving economy at the time. This was called to the attention of Brazil and Argentina, who wanted to keep the economic dominance of the La Plata River for themselves. Aside from this, ships that wanted to arrive at Cuiabá (capital of Mato Grosso, Brazil) had to travel through Paraguayan territory because there was no inland access. And the Paraguayan government began to make travel difficult. Things became tougher when, in April 1864, Brazilian minister José Antônio Saraiva…
Looking at Agriculture as an asset class
Agriculture is one of the oldest asset classes in the world, time-tested and proven to weather economic uncertainty. Within agriculture, farmland has historically proven itself as a tangible, stable storage of wealth, appreciating approximately 3.5 per cent annually over the last 30 years. A Global Farmland Index recently developed by Savills World Research, an index based on data from 15 key farmland markets across the globe, recorded an annualized growth since 2002 of 14.8 per cent. The robust and steady…
Property syndicates are popular but investors need to understand how they work and what the risks are
Property Syndicates are an option for the diversified Investor Property syndicates are a great way for smaller investors to pool their funds to buy a larger farm or other properties that would otherwise be beyond their means. They have been around for a long time but have undergone a surge in popularity in recent years. That’s because some investors were put off investing in the share market or managed funds due to losses they suffered during the GFC. The cash and capital gain returns from farm property…
