The standard and internationally recognised structure for a property investment company. REITs (pronounced “reet”) came into effect in South Africa from the beginning of 2012. These are listed property investment vehicles, which own or operate income generating property. REITs offer individual private investors the chance to benefit from income generated through property without having to actually buy and manage commercial real estate. REITS are publicly traded on the JSE REIT board and must comply with the following prerequisites:
A REIT is exempt from securities transfer tax and capital gains tax (CGT) in the case of disposal of immovable property, shares in other REITs or shares in a controlled property company. Of course, the investor will pay CGT when selling their REIT shares, as is the case with shares.
In summary, a REIT provides direct exposure to a multitude of expertly managed properties with growing and stable income streams.
To read more refer to the following JSE document – https://www.jse.co.za/content/JSEPresentationItems/REITs.pdfDisclaimer - All information and data contained within the PDSnet Glossary terms is for informational and educational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet glossary terms is based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any glossary term for any reason.« Back to Glossary Index