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fungus pudding
05-03-2019, 06:39 PM
Anyone had any dealings with any Mitchell Mackersy property syndicates?
Mitchell Mackersy are solicitors and operate Maori hill properties.

https://mhpl.co.nz/properties/

Their latest offering looks very good. $200,000 per interest. Just wondering if anyone has had dealings with them.

Brief details attached.

lawson
08-01-2021, 03:30 PM
Hi Fungus,

I realise this is a really old post but I was just curious did you end up doing anything with Mackersy? As I'm in the position you were in 2 years ago I am considering investing in one of their properties in Auckland https://www.mackersyproperty.co.nz/properties/aa-insurance-building-auckland-cbd

If you (or anyone else reading this) did have any dealings be interested in your opinion of them to deal with and also any thoughts on the issue of liquidity wjhen it comes time to exit the investment (although I would be buying to hold for many many years)


Thanks

Joshuatree
08-01-2021, 04:25 PM
Hi .Been seeing heaps of investments like this being advertised for prime industrial, office , retails and Hort opps(My Farm). Carrot is re 5 -6% yields from day one ESTIMATED FOR FIRST YEAR!.. Always comes back to liquidity which puts me right off. But should it ? Matching a keen seller to a willing buyer without much discount could be fraught with difficulty in ones own timeframe is my concern..Listed Prop companies have liquidity with a current consequent much lower yield.

fungus pudding
08-01-2021, 05:02 PM
Hi Fungus,

I realise this is a really old post but I was just curious did you end up doing anything with Mackersy? As I'm in the position you were in 2 years ago I am considering investing in one of their properties in Auckland https://www.mackersyproperty.co.nz/properties/aa-insurance-building-auckland-cbd

If you (or anyone else reading this) did have any dealings be interested in your opinion of them to deal with and also any thoughts on the issue of liquidity wjhen it comes time to exit the investment (although I would be buying to hold for many many years)


Thanks

Yes. I have bought into three of their syndicates, and they seem ok. I will buy more, although one, Entex in Ch-ch, has problems. Main tenant is a movie theatre and Covid had them shut down for a while - other tenants in that complex are all restaurants and cafes, so that one will go through a hard time.
For me, I'm not a share buyer (don't know the first thing about shares in general) although have a fair pile in LPTs. I understand Real Estate and nothing else. I can't be bothered with owning more buildings, so these are good things for me. Also good for estate planning.
That's me, but they are certainly not for everyone. they probably aren't very liquid, but that suits me down to the ground as they eventually will be bequeathed and I'd rather the beneficiaries can't splash out on new cars etc.
When I say I know nothing about shares, I have never bought anything with selling in mind - so every move I make is to increase my income.
'keep stacking up income' is my philosophy.
That's why I say - not for everybody.
Another point about Mackersy properties as opposed to other syndicates I am in, is Mackersy offer an option which leaves them sorting out your tax and these days I can't be bothered with paper work. (LPTs are all PIES so that makes them simple too - not to mention the massive tax advantage, particularly under Labour's new 39% bracket)
Hope that's some help.

lawson
08-01-2021, 08:40 PM
Thanks very much Funguspudding and Joshuatree.

I have no experience in this space so always worry that I don't know what I don't know - when investing in a different type of investment product and asset class.

I'm still trying to decide what is best I suppose it really depends on age and circumstances to a degree. I will probably divert money that would normally be in cash or bonds into a couple of these so I'm comfortable with them being very very long term holds and also if inflation does make a real appearance then rents should to some extent keep pace with some annual rent increases being circa 3% or linked to cpi. So I am leaning towards going down this path as you say for income.

By the way, I hope things work themselves out for you FP with Entex now that everything is open again it'll hopefully just be a blip.

Cheers

CROESUS U.T.
09-01-2021, 05:04 AM
Thank you Fungus.
Could you explain how the ownership is structured e.g. company or limited partnership, etc and what protection owners have in the event that they become dissatisfied with the management of the properties.

Reason for asking is that we have been going through a protracted problem with a forestry investment and these were the two issues that prevented a satisfactory resolution. Hence the desire to avoid anything similar.

fungus pudding
09-01-2021, 08:12 AM
Thank you Fungus.
Could you explain how the ownership is structured e.g. company or limited partnership, etc and what protection owners have in the event that they become dissatisfied with the management of the properties.

Reason for asking is that we have been going through a protracted problem with a forestry investment and these were the two issues that prevented a satisfactory resolution. Hence the desire to avoid anything similar.

If you provide email address (Pvt. mssge me if you like) I will forward a couple of brochures that will give you an idea of their structure.* There are other syndicators, e.g. Bayleys, and Augusta - can't recall names of others. I have also attached memorandum of AA building currently being syndicated by Mackersy. I suggest you phone them as 'a potential investor' with any specific questions. I have spoken to woman called Omea Willows who was most helpful. Also Mike Houlker at Augusta is helpful. I think Bayleys have a road-show presentation in February promoting their latest offering. Sarah.Prebble@bayleys.co.nz will be only too happy to provide details.
I am not sure how that all relates to your current situation, but best of luck.

* The brochures are too big too attach to this forum. Alternatively phone Omea Willows or anyone at Macersy properties - contact numbers at bottom of this attachment - https://www.mackersyproperty.co.nz/contact - and they will send you a bit of info.

CROESUS U.T.
09-01-2021, 11:43 AM
If you provide email address (Pvt. mssge me if you like) I will forward a couple of brochures that will give you an idea of their structure.*.
Many thanks - will do

dibble
16-01-2021, 12:49 PM
Thanks very much Funguspudding and Joshuatree.

I have no experience in this space so always worry that I don't know what I don't know - when investing in a different type of investment product and asset class.

I'm still trying to decide what is best I suppose it really depends on age and circumstances to a degree. I will probably divert money that would normally be in cash or bonds into a couple of these so I'm comfortable with them being very very long term holds and also if inflation does make a real appearance then rents should to some extent keep pace with some annual rent increases being circa 3% or linked to cpi. So I am leaning towards going down this path as you say for income.

Cheers


Tread with caution. Syndicates have a place but offers vary considerably.
Ask yourself why they are available at all (ie if they are such high quality why havent they been snapped up by the LPTs) and what would happen in a vacancy. It's common practice to induce tenants (often with a payment or rent holiday) to sign up to a lease that looks good to a mum/dad investor. This is then used to calculate an "independent" valuation. Whether or no that rent is truly "market" would be tested in a vacancy if not before. So review the fundamentals and other qualitative factors with a touch of cynicism. Plus the arrangements are usually geared heavily in favour of the offeror/manager e.g. current one by Augusta (vissy) is the biggest fees fest I have ever seen, its worth getting a prospectus just to witness the scale. Might still be a worthy investment but just be clear whose side the manager is on (clue, not yours).

lawson
18-01-2021, 03:54 PM
Thanks Dibble.

Good points. I had already observed that the return is a year one target in most of these type of property investments and there's no gaurantees so clearly returns may fall a little or even a lot short at times, being realistic.

There's very little that will give a return that doesn't have some downsides though, a matter of picking your poison.

STr
05-10-2021, 06:16 PM
Has anyone looked into this … or a local equivalent? I heard Bill Gates is buying up farms in the US …. This May be safety in the event of more Chinese property company collapses ….
https://moneywise.com/investing/real-estate/grow-your-money-with-shares-of-farmland?utm_source=syn_oath_mon&utm_medium=B&utm_campaign=18904&utm_content=oath_mon_18904_invest+in+U.S.+farmland

TeslaGod
05-10-2021, 06:39 PM
Has anyone looked into this … or a local equivalent? I heard Bill Gates is buying up farms in the US …. This May be safety in the event of more Chinese property company collapses ….
https://moneywise.com/investing/real-estate/grow-your-money-with-shares-of-farmland?utm_source=syn_oath_mon&utm_medium=B&utm_campaign=18904&utm_content=oath_mon_18904_invest+in+U.S.+farmland

When Billionaire's buy farm land it is used for receiving legal tax credits and tax avoidance on there wealth while the land is appreciating in value

The more you buy the more tax credits you receive (tax avoidance)

Similarly to me being able to claim losses like rates, repairs, interest etc on my real estate.

TeslaGod
05-10-2021, 06:42 PM
Has anyone looked into this … or a local equivalent? I heard Bill Gates is buying up farms in the US …. This May be safety in the event of more Chinese property company collapses ….
https://moneywise.com/investing/real-estate/grow-your-money-with-shares-of-farmland?utm_source=syn_oath_mon&utm_medium=B&utm_campaign=18904&utm_content=oath_mon_18904_invest+in+U.S.+farmland

When Billionaire's buy farm land it is used for receiving agriculture tax credits and tax avoidance on there wealth while the land is appreciating in value

The more you buy the more tax credits you receive (tax avoidance)

Similarly to me being able to claim losses like rates, repairs, interest etc on my real estate.

Hope this helps.. cheers.

fungus pudding
05-10-2021, 07:34 PM
When Billionaire's buy farm land it is used for receiving agriculture tax credits and tax avoidance on there wealth while the land is appreciating in value

The more you buy the more tax credits you receive (tax avoidance)

Similarly to me being able to claim losses like rates, repairs, interest etc on my real estate.

Hope this helps.. cheers.

Rates, repairs and mortgage interest are not losses. They are expenses. Rates and repairs can be deducted from the income and tax is payable on the balance (profit). Mortgage interest is no longer deductable other than the first twenty years life of a new building. There should be spelt their. Billionaires should not have an apostrophe.

TeslaGod
05-10-2021, 07:41 PM
Rates, repairs and mortgage interest are not losses. They are expenses. Rates and repairs can be deducted from the income and tax is payable on the balance (profit). Mortgage interest is no longer deductable other than the first twenty years life of a new building. There should be spelt their. Billionaires should not have an apostrophe.

Everyone has a different situation, you don't know what types of real estate I invest in so don't pretend you do.

TeslaGod
05-10-2021, 07:56 PM
Everyone has a different situation, you don't know what types of real estate I invest in so don't pretend you do.

I really wish members on this forum would stop commenting on topics they don't know, are not invested in and don't understand .

Googling something doesn't make you an expert on all matters,

You are all embarrassing yourself and making me cringe .

fungus pudding
06-10-2021, 07:04 AM
Everyone has a different situation, you don't know what types of real estate I invest in so don't pretend you do.

I do not need to know what you invest in. But regardless of what it is, outgoings in any commercial activity are not losses.