With the decrease in supply of properties in the lower end of the investment market, in particular those below $300,000, many financial planners are advising clients to purchase a share in a larger property if a direct investment is not available or doesn't meet an individual's investment strategy.

Syndication offers investors many advantages including:

• Access to investing in larger properties with more secure tenancies.
• The ability to spread risk through investing relatively small amounts in a range of syndicates.
• Better interest rates on loans than riskier investments

MLV Real Estate recently formed a syndicate to purchase two adjoining properties in Canning Vale being the state headquarters of Arnott's and Yamaha. For their investment of $150,000, each investor received a 1/16th share of the two properties which are situated on over four acres of land. Additionally each investor has the security of a 6 year lease to Yamaha and a 9 year lease to Arnott's.

The increase in superannuation contributions and the lowering of interest rates has created a shortage in the number of quality commercial and industrial investments in the lower end of the marketplace. We believe that syndicates offer the unique opportunity for a group of people to pool funds to gain entry into the upper end of the market where there is less competition among purchasers and therefore a greater chance of purchasing a sound investment.