A REIT is a Public Limited Company Listed Investment in the real estate market, a new corporate form created by Law 11/2009, of 26 October (BOE October 27). So, a few days ago.
A REIT is a legal concept that in the Anglo-Saxon world has long existed with the name Real Estate Investemet Trust (REIT) and is now introduced for the first time in Spain. This is a company whose main corporate purpose (at least 80% of its assets) must consist in the acquisition and promotion of urban real estate to be allocated to rent. Its share capital must be at least 15 million euros (amount of it is likely that we do not have neither you nor I right now) and property (housing, commercial premises and others) that rent must be owned by the company .
There are other minor tax advantages, or not so much (referring to the rent to own and others), but with those listed you can get a rough idea of where the shots go. Cupiese if any doubt in the preamble of the law is abundantly clear purpose. It seeks to “provide liquidity to real estate investments, as this is a market that participates in the gross domestic product in advanced economies at a rate around 10 percent, while in Spain this percentage increases to about 16 percent” .
But do we not already had convinced everyone that excessiveness and hypertrophy of our real estate sector was the leading cause of both the infringement of citizens ‘ right to adequate housing and the particularly serious nature of the economic crisis in our country? Had not we all concluded that it was essential a profound change in the economic model, addressing at least its diversification, to avoid a much greater catastrophe in a few years? No, our leaders and in general our parliamentarians believe that what you have to do is re-inflate the bubble, so that the benefits of these gulfs that led us to the brink and, once recovered recover, all we return to the prosperity of the Achievers. Following the reading of the preamble to the law of the REIT (do not tell me that the name is not ocurrente) the thing is self – explanatory: the “stable profitability” investor what is sought.
Of course, the bargain is justified as a measure to encourage rental housing (and parks to create large public housing for rent or are going through your head, of course, until we could get there). But if you think of the amount of accumulated home equity banks they will realize what the real muse of the legislator.
And now, tell me. Have you had learned of the birth of these Listed Companies Investment in the real estate market? What not? Have you read something in the press about these days? What not? Well look on google and you will find pages of “investors” (they themselves who learn) rubbing his hands with the new business opportunity offered by this great government of the wretched of the earth. For us, who we do not belong to the breed famous, let the news that perhaps the deduction of 400 euros for rents to remain with taxable income of up to 12,000 euros. And we get so happy, thinking that a large part of those who move into that level of income does not even have income tax and almost never have enough deductions to perceive 400 euros. Which means, in practice, making use of a devilish tax technique (reduced retention and subsequent minorada deduction on the return) the luckiest receive their 30 0 40 euros 25 cents. And that when operating on a progressive tax with a rate that simply could be varied to increase the payment of the richest, without fuss. Total, for us the parrot chocolate, as usual.
More doubt would be resolved. It is hoped that the spokesmen of the left in Congress have thundered angry against this new tax privilege for bricklayers. Well read on the website of the Congress, the daily session of October 15, when the law was passed, and as if that laugh (or cry) yourselves.
Did you found it interesting? Berbis Swap
has all the earmarks of being the plan B of banks to get rid of real estate whitebait, with the complicity of our dear legislators. Tax benefits galore to attract unwary, but much tax advantage is the key to profitability will be in the purchase prices of real estate.
Do we have to believe us that the manager of the REIT, which belong to the bank, will negotiate hard with its parent for best property prices will buy you?
Anyway, I’m almost tempted to think that actually this may not be as tricky as it seems, is too brazen.
I guess it would have to look at the details of the law, to see if collects almost certain conflicts of interest and how to treat them . There will be the key to whether this is a scam on a large scale perpetrated by banks with the necessary cooperation of the parties, or just a more or less innocent attempt to rescue the housing sector based on subsidies and tax exemptions .
I hope that when we launched the first can make a clearer idea, and authoritative voices guide us on the subject.
Brash no, descaradísimo.
Then we’ll see how that banking markets them as something serguro sure … with some segurísimos dividends … come … as real estate Banif.
It is the plan of the bank … not B.
After seeing how they sell preferred, subordinated debt, etc etc to gogó seamlessly between retailers the next step is this no doubt.