Latest news with #investmentproperties
Yahoo
25-05-2025
- Business
- Yahoo
$3 million super change sparks property warning as 'panic' selling begins: 'Forced to sell'
Australians are expected to sell off their investment properties to avoid the looming tax on superannuation savings worth more than $3 million. Financial advisers have told Yahoo Finance there is a 'tangible sense of unease' amongst their clients, with some wealthy retirees beginning to 'panic' sell due to the upcoming change. The controversial superannuation tax will double the existing tax rate from 15 to 30 per cent for earnings on super balances above $3 million, including unrealised capital gains. The changes are scheduled to come into effect on July 1, following the passing of legislation. Ray White head of research Vanessa Rader said this marked the first time unrealised gains would be subject to taxation in the superannuation environment, presenting 'unique challenges' for residential property investments within self-managed super funds (SMSFs). RELATED Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Most in-demand tradie jobs paying nearly $3,200 per week amid crisis: 'Shining a light' Major backflip from world's most cashless country as Australia mulls money law 'When a property experiences significant capital appreciation on paper, the resulting tax liability would require cash payment even though no actual sale has occurred,' she said. 'Unlike shareholders who can sell a portion of their holdings to cover tax obligations, property is indivisible, creating potential liquidity crises for SMSF trustees.' Rader gave the example of an SMSF with a $2.5 million residential investment property that appreciated to $3.5 million. This would trigger tax obligations on the unrealised portion of the gain above the $3 million threshold. 'Without adequate cash reserves, trustees might be forced to sell the entire property or seek alternative funding sources to meet these obligations,' she said. Residential properties held within SMSFs already have strict rules around them. For example, they can't be rented or occupied by fund members or their relatives. This, combined with the super tax changes, may 'significantly reduce' the attractiveness of residential property as an SMSF investment vehicle and drive people out of the market. 'This could lead to broader market implications such as potential listing supply increases and a shrinking pool of rental properties if SMSF trustees reconsider their investment strategies or restructure their portfolios before the implementation date,' Rader said. The tax change could drive structural shifts in residential property investment patterns, including a reduction in SMSF residential property holdings, particularly for those approaching the $3 million threshold.' Rader said investors could turn to commercial properties that might deliver stronger income yields relative to capital growth, move assets to structures outside of super, or focus on tax-exempt primary residences. 'In the long term, this policy could impact residential property valuations in specific market segments,' she said. 'Properties typically favoured by SMSF investors are often in the middle to upper price brackets in metropolitan areas, and might experience pricing adjustments as demand from this investor class diminishes.' Mintwell financial adviser Josef Jindra said he was seeing a 'tangible sense of unease' amongst clients, particularly those who had spent years diligently building up their super balances. 'For my clients approaching or exceeding the $3 million mark, we're having in-depth conversations about tailored strategies,' he told Yahoo Finance. 'This may include planning withdrawal strategies to stay below the threshold, diversifying investment holdings outside of superannuation to enhance flexibility, and reducing exposure to the higher tax rate.' Melbourne-based tax adviser Noel Beharis echoed this, saying there was a 'significant amount of panic' among SMSF members. 'For members of retirement age who can cash out their superannuation benefits, they have started the process of selling down assets and transferring the assets out of the fund to vehicles that will hold that wealth going forward,' he told The Australian Financial Review. The Treasury estimates the changes will only impact 80,000 people, or 0.5 per cent of the population. However, the Financial Services Council projects that more than 500,000 people who are working today will be impacted by the tax over their lifetime. Research by AMP deputy chief economist Diana Mousina found that at least half of Gen Z would hit the $3 million mark by the time they retire due to wage inflation and compound while retrieving data Sign in to access your portfolio Error while retrieving data
Globe and Mail
14-05-2025
- Business
- Globe and Mail
Madison Pacific Properties Inc. announces the results for the three months ended March 31, 2025 and declares special dividend
VANCOUVER, British Columbia, May 14, 2025 (GLOBE NEWSWIRE) -- Madison Pacific Properties Inc. (the Company) (TSX: MPC and MPC.C), a Vancouver-based real estate company announces the results of operations for the three months ended March 31, 2025. In July 2024, the Company's Board of Directors approved a change of financial year-end of the Company from August 31 to December 31. This change of year-end is effective for the financial year commencing September 1, 2024. The comparative figures presented for the three months ended March 31, 2025 are the three months ended February 29, 2024. The results reported are pursuant to International Financial Reporting Standards (IFRS) for public companies. For the three months ended March 31, 2025, the Company is reporting a net income of $6.2 million (three months ended February 29, 2024: $14.4 million); cash flows generated from operating activities before changes in non-cash operating balances of $3.3 million (three months ended February 29, 2024: $2.7 million); and income per share of $0.10 (three months ended February 29, 2024: $0.24). Net income includes a net gain on the fair value adjustment on investment properties of approximately $5.2 million (three months ended February 29, 2024: $12.3 million), equity earnings of associate and joint ventures of $0.1 million (three months ended February 29, 2024: $0.7 million), interest income of $0.2 million (three months ended February 29, 2024: $0.9 million), and interest expense of $3.7 million (three months ended February 29, 2024: $3.2 million). As at March 31, 2025, the Company owns approximately $731 million in investment properties (December 31, 2024: $724 million). As at the date of this Press Release, the Company's investment portfolio comprises 55 properties with approximately 1.9 million rentable sq. ft. of industrial and commercial space and a 50% interest in seven multi-family rental properties with a total of 219 units. Approximately 94.49% of available space within the industrial and commercial investment properties is currently leased and within the multi-family residential properties, 97.26% is currently leased. The Company's development properties include a 50% interest in the Silverdale Hills Limited Partnership which currently owns approximately 1,425 acres of primarily residential designated development lands in Mission, British Columbia. For a review of the risks and uncertainties to which the Company is subject, see its most recently filed annual and interim MD&A. The Company announced today that it has declared the payment of a special cash dividend of $0.34 per Class B voting common share and Class C non-voting share payable on June 4, 2025 to shareholders of record on May 27, 2025. The amount of the special one-time dividend allows the Company to continue to pursue real estate opportunities while returning some capital to shareholders. The special dividend is in addition to any dividends that may be declared pursuant to the regular dividend policy of the Company. The dividend is an eligible dividend for Canadian tax purposes.
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Best Vacation Home Offers Complimentary Consultations to Buyers Seeking Unique International Properties
Vienna, Austria--(Newsfile Corp. - May 13, 2025) - Best Vacation Home, a trusted advisor in the vacation real estate market, today announced it is offering complimentary consultations to individuals and families seeking unique vacation and investment properties. With knowledge in international markets and a commitment to personalized service, Best Vacation Home guides clients toward destinations that offer lifestyle enhancement. Best Vacation Home Offers Complimentary Consultations to Investors Seeking Unique International Properties To view an enhanced version of this graphic, please visit: Personalized Guidance from Experienced Professionals to Help Potential Investors Make Informed Decisions The company's team possesses in-depth knowledge of these markets, including local regulations, property ownership laws, and investment potential. They guide investors through the entire process, from property selection and due diligence to financing and legal considerations. "Best Vacation Home recognizes that navigating the international real estate market can be challenging," said Borislava Kostova-Seib, MA, MBA, the exclusive representative of Best Vacation Home Gmbh in Austria. "These complimentary consultations provide a valuable opportunity for people to discuss their goals, explore diverse options, and gain insights from experienced professionals. According to BVH's experience, the best locations for buying vacation homes change every 12 to 24 months, giving a short window to act, making it crucial for buyers to stay in tune with market trends." Unlocking Opportunities in International Real Estate Markets Best Vacation Home specializes in assisting investors in various, both emerging and mature destinations, such as: North Cyprus: A hidden gem in the Mediterranean with pristine beaches, affordable property prices, and a growing tourism sector. The region offers a relaxed lifestyle, a rich history, and a favorable tax regime. Spain: A diverse country with a rich cultural heritage, stunning architecture, and beautiful beaches. From bustling cities to charming coastal towns, Spain offers a wide range of investment opportunities to suit various lifestyles and preferences. Dubai: A global hub of luxury and innovation, rich with iconic architecture, world-class shopping, and vibrant nightlife. Dubai offers investors high-end properties with strong rental potential in a rapidly growing market. By offering complimentary consultations, for a short period of time, along with a range of supportive services, Best Vacation Home empowers individuals and families to achieve their vacation home dreams while making smart financial choices. The company's expertise, personalized approach, and commitment to client satisfaction make it a trusted partner for anyone seeking to navigate the exciting world of international real estate. Individuals interested in scheduling a complimentary consultation can visit:
