Property investment clubs are the newest funk in the field of real estate investment. However, it should be noted that these investment clubs are often for small to medium size investors who might want to invest or planning on buying a holiday home for their retirement. Property clubs can be also utilizes as a profit yielding investment, especially if you want to be a bit more ambitious with your investments.
However, it should be noted that property investment clubs does not cater to big time property investors but, on the other hand, are specifically designed to provide a better edge to private individuals by utilizing the power of the group to bargain better terms and conditions.
As the name suggest, property investments clubs are truly clubs where people who want to get started with property investments can join and fulfill their dreams. Mutual benefit is one of the purposes for its existence. To sustain the existence of the club, the group requires each member to pay obligatory dues and it is worthwhile to mention that each member have control of the funds since the group is directed by every individual members, and not by one single associate. Whatever project is undertaken or is planned to be carried out, it will be evaluated first by everyone and the decision to invest-or not-lies with individual members and the consensus if the group.
The bigger the club, the more negotiating power it will have against property developers. Often, the members who initially joined the group have limited capital thus, recruitment of new members are often required. The more negotiating power the club has, the better benefit it would be for all.
Here are some of the advantages in being a member of property investment clubs:
1. Before a certain apartment or property is pre-sold, it is first released to the investment property group so they can first choose which apartment they would want for themselves. And since they the first to see the apartments and the first to buy, they are also provided with a better price.
2. Most property investment clubs place a group order. 20 to 30 units of apartment are placed instantly. With this fact in mind, property clubs are afforded with huge discounts and better buying terms.
3. Most property clubs are provided with notices three to four months prior to the plans being finalized which allow property members to visit and thoroughly research the site, before they make any prior commitments.