Real Estate Investor Magazine South Africa October 2013

LISTED BY IAN ANDERSON Thinking of Listed Property? The experts tell you how best to invest! W hile most investors are aware of the benefits of investing in commercial and industrial property, gaining exposure to property outside of owning one’s own home is often viewed as a daunting prospect. The listed property sector on the JSE Limited enables investors to invest in high quality commercial and industrial property portfolios without many of the obstacles associated with investing directly in commercial property. There are many options to gain exposure to listed property. The most obvious is to buy shares in listed property companies through a stockbroker or online trading platform. Although technically the initial investment could be as low as R100, there is usually a minimum fee for executing a trade and therefore a more appropriate initial investment would probably be around R 5 000. That amount could provide exposure to the rental income from tenants in the V&A Waterfront or Canal Walk Shopping Centre, two of Africa’s iconic property destinations. The total cost of acquiring that exposure could be less than 1%, depending on the brokerage rate negotiated with the stockbroker as no Securities Transfer Tax (STT) is payable on buying and selling the shares of SA REITs. The one dow nside of mak ing a sma l l investment directly in the shares of an SA REIT is that one is now exposed to just one SA REIT. For for a more diversified portfolio of SA REIT shares, there are several cost effective options available. The first is to invest in an exchange-traded fund (ETF) that tracks the performance of South Africa’s listed property sector. PropTrax SAPY (JSE code: PTXSPY) tracks the price and yield performance of the FTSE/JSE SA Listed Property Index. To gain exposure to PropTrax SAPY, the investor can buy shares 50 October 2013 SA Real Estate Investor through a stockbroker or online trading platform. ?????????????A??Q???MAd)????????????????????????????????????)M?I%Q???????????????????????????)????????????)Q?????????????????????????????????????)?????????????????????????????????????)??????M???????????L?I?????????L??????)????????????????????????????????)Q?????????????????????????????????????(???????????????????????????QM?)M?I???)?????????????????Q????????????????)????????????????????????????????????????)????????????????????????????????)????????H??????????????????????????)??????????????????H???????????????)?????????????????????????????????????????)?????????????????????????????????????????()!??????????????????????????)??????????????)?????????????????????????????????)???????????????????????????????????)???????????????????????????????)?????????????????????????????????)????????????????????????????5????)?????????????????????????????????%??????)??????????????????????????????????)???????????????????????????????????????)?????????????????????????????????????)???????????????????????????????????)??????????????????)Q???????????????????????????????)??????????????????????????????????)???????????????????????????????????)?????????M????????????????????????????)??????????????????????????????????)???????????????????????????????????????)??????????????????????????????????)???????Q????????????????????????????)??????M????????????????????????????)??????????????????????????????????????()????????????????????????????????]?????)UL???????I????????????????????????)??????????????????????????????????????)???????????????????????????????????)?????????????????????????????????????)????????????????????????????????)%????????????????????????????)??????????????????????????????????????????)???????????????????????????????????????)1????????????????????????????????????)??????????????????????????????????)?????????????????????????????????)???????????????????????????????????????)????????????????????????????????????????)?????????????????????????????????????????)???????????????????????????????????)????????????????????Q?????????????????)???????????????????????????Q???)????????????????????????????????????)???????????????????????????????????)????????????????????????????????????)???????????????????????????????????)????????????????????????????????????)????????????????????????????????????)??????????????????????????????????????????)???????????????????????????????)%?????????M?I%Q????????????????)???????????????????????????????????????)?????????????????????????????????????)??????????????????????????????????Q??)???????????????????????????????)?????????????????????????????????????)?????????????????M?I%Q???????????????)?????????????????????????????????)???????????????????????????????????Q??)????????????????M?I%Q???????????????)??????????????????????????????????)?????????????????????????????????)???????????????????????????????????????)?????????????????()IM=UI L()?????????5?????????()??????????????((

Real Estate Investor Magazine South Africa October 2013 | Page 52