Achieve the benefits of an accredited investor the clock is ticking !
Smart investing requires action and in most cases , there is a window of opportunities to benefit from , and once the window closes , the opportunity may never present itself again .
An accredited investor is an individual or a business entity that is allowed to trade securities whether listed shares , direct property investment or any investment that may not be directly registered with financial authorities .
Generally , they are entitled to this privileged access by satisfying their requirements regarding their income , net worth , asset size , governance status , or even professional status . Accredited investors essentially refer to investors who are financially sophisticated , educated , and experienced . They are investors who have a reduced need for protection akin to the public or newbie investor provided by regulatory disclosure based on their investment experience .
Accredited investors include high net worth individuals ( HNWI ), banks , insurance companies , brokers , companies and trusts . The benefits mainly include getting presented the opportunity to access best available return investments first . Besides the fact that accredited investors are targeted by authorities like the South African Revenue Service ( SARS ) to maximise their tax returns , they ’ re also targeted by real estate funds , investment houses , brokers , etc . seeking much needed capital to fund their investments . Government initially created a tax break 12J investment vehicle to create more jobs and stimulate the economy in 2009 and now for a limited period there is this opportunity which is now available to all investors .
The local average home buyer or buy-to-let investor clearly does have different needs and goals compared to an accredited investor . The dynamics of investing changes all the time and investors need
2 MAY 2021 SA Real Estate Investor Magazine