Learning Material Sample
Investment and risk4.4 Asset classes - propertyIn this section, we aim to understand the main features, types of potential returns, key factors affecting price, volatility, access, taxation issues and variations of property as an investment asset class.
Property as an asset class can provide returns both from increases to its capital and by providing income usually in the form of rental ...
Shortened demo course. See details at foot of page. ...an be found or there are defaults on rent. It can also be illiquid i.e. difficult to buy or sell in terms of time and supply and demand. This will depend upon the economic conditions over a period and the quality of tenants. Property analysts will tend to foresee where conditions are improving or getting worse and buyers and sellers keeping a close eye on tr...
Shortened demo course. See details at foot of page. ...ood quality tenants and increased property values as demand rises. This would smooth out eventual returns. Note however, that historically returns have not been much above the rate of inflation on average over long periods. As already mentioned, property bought and sold directly is illiquid. The...
Shortened demo course. See details at foot of page. ...ss could be very different to the underlying asset in which they invest. When considering direct investment into property as an individual, then the tax consequences for residential buy to let property are as follows:
Rental income is taxed as property income and basic rate taxpayers will pay 20% tax, higher rate... Shortened demo course. See details at foot of page. ...joy its tax exempt status for CGT purposes.Note that purchasers of land and property in the UK will be subject to Stamp Duty Land Tax, the rate of which as a percentage of the total value of the consideration increases the higher the value. We have already discussed some key issues but it is worth re-iterating that an individual...
Shortened demo course. See details at foot of page. ...mula:Net operating yield = Gross rent minus expenses/(Market price + costs of buying) Investment will be in the form of retail buildings, offices and industrial properties all with their special features and benefits Again the quality ... Shortened demo course. See details at foot of page. ...aniesProperty unit trusts and investment trusts Insurance company property funds Offshore property companies Real Estate Investment Trusts. |
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