Frequently asked questions

Each Property Circle must have at least one nominated Director. This person will be the guarantor of the loans within the Circle and is required to have good credit history and strong serviceability

Circle Members may elect to pay a Director’s fee (approximately $5000 per property per annum) as compensation for the additional responsibility. If you are starting a Circle, you must elect to be a Circle Director, or find someone who can be. 

Each recommended property is selected by our property buyers and 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 work with your buyer’s agent and pinpoint the best options for your Property Circle to ensure your purchasing criteria is met

Property Circle members will vote on your preferred property choice

The Property Circle may engage a valuer, at the Circle’s cost, to value the properties. Generally, this valuation is done each time the Property Circle purchases a new investment

Expenses like rates, property management fees and incidentals are all paid for directly by the Property Circle

The rental income from your property is deposited into your Property Circle bank account and all expenses are paid from this account

Our fees are listed here

Our Fees

On top of this, Circle Members will pay for the other costs associated with setting up a Circle and purchasing a property.

Contact General Manager Amelia for a full Circle Budget 

Contact Us

Have a think about what you want out of a Circle: 

• Do you want to join an existing Circle or start your own? 
• What timeline do you have in mind for the Circle? 
• Do you know who you want in your Circle or do you want to advertise for potential Circle partners? 
• Are there one or two people in your Circle willing to take on the Director responsibilities of the unit trust? 
• Make sure you speak to your Financial Planner and/or Accountant for advice 

Pay $1000 to secure your place and get the ball rolling (these funds will form part of your contribution to the Circle, they are not in addition.) 

Circle guidelines will be set up to make sure everyone in the Circle is on the same page 

The taxes you pay on your annual dividends and proceeds from any sale will depend upon your own personal situation and how you invested. We recommend you speak to your accountant about this

• The properties are held in a Unit Trust structure. The Unit Trust is owned by Unitholders (you!)
• The Trustee Company manages the Unit Trust and is owned by shareholders (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

You are. Your Property Circle is controlled by the members. You make the decisions as a group

• Don’t worry if can’t pay as much as everyone in your Circle, this is not a legal obligation. Some Circle Members contribute more than others, they will own a greater share of the units (shares). 

• The minimum term for most Circles is five 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)
• Renovation and Development Circles may have shorter terms of 12 months to three years

• The default position is to sell all Properties and divide proceeds between all Unit holders

Or if all members agree you may:

• Renew for another five years and add more properties OR
• Take a property each

Exit Plan