Beyond investment options such as owning rental property, flipping houses or investing in property indirectly through the ASX, there are alternative ways for qualified investors to invest in the real estate sector, which remains a good hedge against inflation and one of the most reliable ways to build long-term wealth.
However, many first-time property investors assume that their options are limited to either hands-on ownership and management of a property or otherwise buying shares in REITs, according to Winim.
“Some would-be property investors feel as though they have the money but not the time, know-how or patience to get into development,” WINIM’s head of capital transactions and investor relations Gus Kuiters said.
“However, by pooling money with other investors in a property trust or special purpose vehicle (SPV), investors can gain access to benefits that might not have been achievable as a single investor.
“Through the fund manager and trust structure, investors can access properties without the significant upfront capital that would have been required to purchase and develop property directly.
“The greater pool of capital enables an investor trust to acquire interests in several properties, providing a critical level of diversification unable to be achieved when investing directly.”
Kuiters said Winim Funds Management was established to make it easier for investors to ‘get in the game’ who might otherwise stay on the sidelines.
Kathleen T has been an investor in some of Winim’s funds and has also been a buyer in one of Winim’s developments. Below, she shares detail about her investment strategy and what attracted her to Winim.
What made you decide to become an equity investor with Winim Funds Management?
I was looking for a hassle-free way to invest in property. I asked around and did my research, reading about what to look for in a strong property fund manager.
I learned that it’s important to find a fund manager with experience who will make it easy to consider the relevant risks and benefits.
You want someone who researches regions and markets thoroughly before looking to invest. Winim fit the criteria.
They focus on suburbs that perform well. I like how they give me the overall macro considerations before getting into project specifics.
They’re very experienced in property and finance, and they deliver the projects themselves. Hence they are accountable.
While there are more than one ways to invest in property, what are some of the advantages of investing as an equity partner in a premium residential development with a team like Winim?
I like having the opportunity to invest in developments in areas that I have some knowledge of and believe in, without the challenges that come with developing, financing or managing an asset day-to-day.
There is something comforting about seeing progress first-hand, being familiar with the project and working with a team that delivers a positive end result by favourably adding quality boutique developments to the community.
What is it about Winim’s approach that appeals to you?
With Winim, I know it’s going to be a well-designed, quality product that will stand the test of time.
I like the idea of being able to drive by one day in the future and say, “I helped make that happen, and I’m proud of it,” not just, “I made a nice return on another cookie-cutter development”.
How did you first get involved with Winim?
We got to talking in 2015 about the need for a more simplified, accessible investment opportunities for people like myself who want to invest in developments of a higher quality than the average development.
I was an early investor with Winim, they showed me what they could do and so I’ve been a repeat investor since.
What is the process like when investing with Winim?
They are proactive about communicating with me, keeping me up to date on any new opportunities that may suit my investment preferences, keeping me in the loop about what’s going on but not overwhelming me by filling my inbox with too much information.
And if the timing isn’t right for me personally for one reason or another, I can decline with no hard feelings. There is never any pressure.
You liked the quality of the product so much that not only have you invested repeatedly as an equity partner, but you also ended up buying a unit within one of Winim’s developments.
I felt it was time for me to purchase some investment property directly. Having worked with the Winim team and seeing the quality of their product, we invested in buying a unit in a property they developed in Jannali and subsequently sold it a year or two later for a solid return.
I can now recommend the Winim team as an investor and as a property owner. If you’re looking to get more out of your SMSF returns, I can recommend diversifying with strong direct property investment opportunities with Winim Funds Management.
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