FAQs By Topic
How do I register with My Property Circles?
- First you need to register online with us and create a profile.
- Go to https://www.mypropertycircles.com/register/
I have some questions I would like to ask. How do I get in contact?
What options do I have to invest or contribute in a Property Circle?
- Company Pty Ltd
- Self-Managed Super Fund (SMSF)
- Mixture of above
I would really love to get involved but do not know where to start, what should I do?
- Contact us and have a chat, we do not bite! We understand that not everyone has a background in accounting or real estate so it can be a little daunting. https://www.mypropertycircles.com/contact-us/
- Have a chat to your family, friends, accountant or advisor to see if My Property Circles would be right for you
I want to use my superannuation to purchase properties, how can I do this?
- Please see the Self-Managed Super Fund (SMSF) Fact Sheet
- Contact your Accountant to learn or visit our partners page to contact the best in the business. https://www.mypropertycircles.com/partners/
What are the different types of Property Circles I can join?
- Friends and Family Circle - Create a circle with your friends or relatives. This is our most popular Property Circle
- Start Up Circle – Create or join a Property Circle with like-minded investors. Helping you get your foot in the door of the property ladder.
- Renovation Circle - For investors who are able to contribute extra money to the Property Circle to buy, renovate and flip properties quickly
- Commercial Circle – Investors who are interested in commercial buildings or areas
- Development Circle – For passionate investors who want to build and develop large scale properties
- International Circle – Get together with a group of mates and start dreaming of that special destination abroad that you would love to own
How much deposit is required to purchase a property?
- Your Property Circle will need 20% of the purchase price for Australian Properties.
- The good news though is that you will be sharing the cost of the deposit with other members of your Property Circle.
What is the minimum amount of money I need to start a circle?
- It really depends on what type of circle you would like to start and how many members will be joining you in your circle.
- One of our more popular types of Property Circle is the Start-up Circle. The cost for the first year (to setup this circle and buy your first property) would be $160,000. Share the cost of this with five friends and this would be $32,000 each for the first year. The more members in the Property Circle the less it would cost for each member.
- If you have twenty members in your Property Circle this would mean you each need $8,000 per year or $155 per week.
What are the steps involved in starting or joining a Property Circle?
How am I matched to an existing Property Circle?
- We use an algorithm to best match you into a suitable Property Circle to suit your needs.
- You just need to tell us on your profile what you are trying to achieve and we will find the right people for you. i.e. The type of property, how much you want to invest annually.
- My Property Circles will match everyone to maximise success with lending and investment goals.
- For example, person X wants to do international and local investing, and can offer high income, so they will get matched with someone with assets, and/or international connections.
- We match the right mix of people to ensure we are making it as easy as possible for the Property Circle to meet the banks criteria for lending.
Directors are required for each Circle – What does this mean?
- For each Property Circle there must be a nominated Director. This person would be expected to be the guarantor of the loans within the property circle and required to have good credit history.
- The director will be paid for their service via a percentage of the equity built within property circle or a set fee. This is determined by the group and set in the mandate.
What are the Rules (or Mandate)?
- The key to success is to have very strict criteria on the rules. As a ‘Property Circle’ you need to decide what you are willing to buy, and how much you are willing to spend.
- This is all written up in a legal document, and everyone sticks to the rules.
- There will be an independent chairman, who meets with the group and keeps everyone focused and on track.
- It’s very much run like a company, with a chairman, treasurer, secretary.
Who operates, manages and holds assets for the My Property Circles platform?
- The properties are held in a Unit Trust structure. The Unit Trust is owned by Unitholders ie you.
- The Trustee Company manages the Unit Trust, and is owned by shareholders ie also you
- You hold shares within the Trustee Company and units in the Unit Trust in equal amounts. 10 shares in the Trustee Company = 10 units in the Unit Trust.
- The My Property Circles team works with you and management experts to manage the day to day running of the properties, and meet any statutory requirements.
What are the benefits and risks of this type of investing?
- There are a number of positives that come with a shared approach to property investment.
- Many investors have been priced out of the market. Using My Property Circles the amount of money needed to invest, through dividing the cost of an investment property into shares, makes it easier to purchase.
- This method can also allow an investor to have a diverse amount of investments across multiple properties.
- Whereas in the current housing environment being able to buy a property has become very challenging, My Property Circles investors get to buy shares across a wide range of properties for a small sum when compared to the full cost of the property.
- The negatives:
- You may receive smaller returns compared to usual property investment. But hey, you may not have been able to afford to get into the property market at all, so you are winning!
- Property is traditionally considered to be a slow burn investment strategy. While considered less volatile than other investments like shares, the returns you receive will be accumulative over the long-term and not the short-term.
Who is in control of our Property Circle?
- You are. Your Property Circle is controlled by the members (unit holders). You make the decisions as a group.
How do we meet the banks criteria for lending?
- The My Property Circles team will ensure that one of our independent lending experts are on hand to assist your Property Circle with all the loan requirements.
How are properties selected?
- Each recommended property is carefully researched by our partners at Ripe House www.ripehouse.com.au who provide simple to use data analysis, tools and commentary reports on the property market.
- They will pinpoint the best options for your Property Circle to ensure your purchasing criteria is met.
- Your Property Circle members will vote on their preferred property choice.
How are properties valued?
- The Property Circle may engage a valuer, at the circles cost, to value the properties. Generally, this valuation is done each time the Property Circle purchases a new investment.
Who pays for the expenses for the property?
- Expenses like rates, property management fee and incidentals are all paid for directly by the individual Property Circle.
- The rental income from your property is deposited into your Property Circle bank account and all expenses are paid from this account.
Are my returns taxable?
- Any returns made by your Property Circle, may affect your own personal tax situation. This will be determined by your own accountant.
Are there any fees involved?
- There is a once off set-up fee of $7,500
- There is a Circle administration fee of $1,500 per annum, per property
How long do I have to remain in the Circle?
- The minimum term is 5 years. If you would like to exit before, you will be required to sell your shares to another party within your circle or choose another to join the circle (with all existing members to agree)
At the end of the five-year term what happens?
- Default – Sell all Properties. Divide between all unit holders
- Or, if all members agree;
- Renew for another five years, and add more properties
- Take a Property Each