Connect with us

Real eState

JPMorgan’s Pil Sees Quick Return to Office Boosting Real Estate

Published

 on

(Bloomberg) — People will likely return to the office more quickly than expected and that will help boost the price of some commercial real estate, according to J.P. Morgan Asset Management.

Investors may be making a mistake by extrapolating the future from the current situation with lots of working from home due to Covid-19, according to Anton Pil, global head of alternatives at J.P. Morgan Asset Management, part of JPMorgan Chase & Co. Top malls worldwide should see a faster-than-expected rebound in traffic, he said, and there’s an overshoot in expectations about how many people will want the status quo versus returning to the office.

“I’m expecting a pretty significant rebound in valuation,” Pil said in a phone interview Wednesday. “Financing terms are at some of the lowest levels that we’ve ever seen, and the income generation continues to be quite strong, at least if you own top-notch offices in strong locations.”

Urban centers have been able to survive previous pandemics and will do so again this time, Pil said. He pointed to the co-working trend as evidence that even when people could work from home they found there was value in being around others.

However, investors are taking things slowly at this point, with commercial real estate dealmaking in the third quarter far below pre-pandemic levels, according to data from CBRE Group Inc. and Real Capital Analytics Inc.

Pil also said that easy monetary policy and available financing means that it’s harder to tell which companies have simply been hurt by the pandemic and which have business models that just aren’t viable. J.P. Morgan Asset Management has stuck to a relatively conservative approach that’s focused on the actual assets companies own, he said, to avoid potential trouble on that front.

Venture capital will be a very robust market over the next year or two, Pil added. Lots of new businesses will be started by people who were laid off or had salaries reduced during the pandemic, he said, plus the efficiency of working from home and broader adoption of cloud computing has made starting a business cheaper and easier around the globe.

 

Source:- BNN

Source link

Continue Reading

Real eState

Introducing Personal Real Estate Corporations – Tax – Canada – Mondaq News Alerts

Published

 on


To print this article, all you need is to be registered or login on Mondaq.com.

Effective October 1, 2020, brokers and agents in Ontario can
incorporate personal real estate corporations (PRECs) to receive
remuneration for their services to their brokerage. The following
is a summary of PRECs and the relevant considerations that may
apply.

Why would I want a PREC?

The primary benefit of a PREC is the ability to defer income
tax. Without a PREC, agents and brokers pay tax at their personal
rate on the commissions they earn, which can be as high as 53.5% at
the top marginal rate. If paid to the PREC instead, the commission
will be taxed at the corporate rate of 12.2% on the first $500,000,
assuming the PREC is eligible for the small business rate. This
leaves you with more money to invest within the corporation. While
money you later take out of the PREC will be subject to personal
income tax, your accountant may be able to advise on additional
savings strategies, such as the payment of a salary or
dividends.

How do I know if a PREC is right for me?

If you would have funds to reinvest after paying your living
expenses and taxes, a PREC may be worth considering. You should
speak to an accountant and corporate lawyer to assess whether a
PREC makes sense for you.

What are the requirements of PRECs?

PRECs require the agent or broker to be employed (either as an
employee or independent contractor) by a brokerage, and to be the
only voting shareholder, the sole director, and the president of
the corporation. Non-voting shares may be held by other family
members. There must also be a written agreement in place to govern
the relationship between the agent, the brokerage, and the PREC,
among other requirements.

Are there any restrictions on PRECs that do not apply to
regular corporations?

There are several. The PREC may not carry on business as a
brokerage, nor can it carry on the business of trading in real
estate (other than to provide the services of the agent or broker
to the brokerage). This will restrict the use of the PREC to buy
and sell real estate. The PREC may only receive remuneration that
is associated with trading in real estate from the brokerage, and
the agent or broker can only receive such remuneration from the
PREC or brokerage. Furthermore, the PREC’s name and any
advertisements must not suggest it trades in real estate.

Can my existing corporation operate as a PREC?

Yes. However, this would involve amending the existing
corporation to turn it into a PREC. Alternatively, to achieve
greater flexibility you may wish to incorporate a second
corporation to operate as the PREC instead. Please speak to your
legal advisor for more information.

Does the PREC provide protection from personal liability?

It does not. While the PREC may receive commissions earned by
the agent or broker, it is not a vehicle through which he or she
provides services.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Tax from Canada

Let’s block ads! (Why?)



Source link

Continue Reading

Real eState

Fitch Rates Xinyuan Real Estate's Proposed USD Senior Notes 'B-' – Fitch Ratings

Published

 on


[unable to retrieve full-text content]

Fitch Rates Xinyuan Real Estate’s Proposed USD Senior Notes ‘B-‘  Fitch Ratings



Source link

Continue Reading

Real eState

Home sales hit record in 2020 despite pandemic – CP24 Toronto's Breaking News

Published

 on


OTTAWA — The Canadian Real Estate Association says home sales in December hit an all-time record for the month to end what was also a record year.

It says December sales were up 47.2 per cent compared with December 2019, the largest year-over-year gain in monthly sales in 11 years.

Sales for the month were also up 7.2 per cent compared with November.

For 2020 as a whole, CREA says some 551,392 homes were sold, up 12.6 per cent from 2019, and a new annual record.

The actual national average home price was a record $607,280 in December, up 17.1 per cent from the final month of 2019.

CREA says excluding Greater Vancouver and the Greater Toronto Area, two of the most active and expensive markets, lowers the national average price by almost $130,000.

This report by The Canadian Press was first published Jan. 15, 2021.

Let’s block ads! (Why?)



Source link

Continue Reading

Trending