Tag: Real Estate Investment Trust (REIT)

Nobody enjoys paying tax, but since it’s our legal obligation, we may as well make the most of it by legitimately saving where we can. Because tax savings - even if fractional - compounded over prolonged periods of time can contribute significantly to any person’s financial position.

Urban logistics as a subsector has benefited from the surge in online shopping and the demand for ever-shorter delivery times. While the pandemic has driven sustained and unprecedented disruption of property as an asset class, self-storage has emerged as a resilient sub-sector.

Sustainable finance could help drive Africa’s recovery from COVID-19 while also incentivising much-needed investments in the green economy and social development. The global pandemic has set back the continent’s growth and demanded new approaches to economic development.

The macro environment has been deteriorating over the past few years and this has been exacerbated by the COVID-19 crisis. As a result, the credit market has been characterised by deteriorating credit quality and credit spreads. The key credit cycle indicators that we look at confirms this market phenomena.

Investors need to be aware of the long-term trends so they can make decisions that grow their investments, this means being well-informed about developments around the world and educating yourself on how these changes can affect you and your investment.

You’ve heard about the wonders of property as an asset class and you have made a commitment to get into it. The most obvious way to enter the market is to buy property directly – as in when you buy a home, the whole building as well as the garden belongs to you (well, it will do in 20 years’ time when you have paid off the bond).

Property, and the ownership of land, is an emotive topic in South Africa. While progress towards redressing inequality in land ownership and the property sector could be far quicker, the good news is that we know where we stand, and property offers unique prospects for achieving real social change. 

The taxation of real estate investment trusts (REITs) was discussed at the recent National Treasury Workshop on the 2018 draft Taxation Laws Amendment Bill, held on 4 September 2018, in Midrand. The correct tax treatment of certain anomalies, including the taxing of commercial lease deposits, was raised.

Commercial property forms an important part of the investable asset universe. Although dependent on relevance of location and the property assets in question, commercial property offers stable growth and income returns coupled with a reasonable level of inflation protection.