Guest Riser Posted March 23, 2006 Share Posted March 23, 2006 (edited) Some details on Real Estate Investment Trusts (REIT's) hidden in Yesterdays budget. The markets seemed to like it but will it really make a difference ? REIT relief boosts property and helps FTSE to finish above 6,000 REIT relief boosts property and helps FTSE to finish above 6,000SUSAN NELSON LONDON'S key index closed above the 6,000 mark yesterday for the first time since March 2001 as the City digested Chancellor Gordon Brown's tenth Budget. Property shares made the most running as the Chancellor overhauled his proposals for Real Estate Investment Trusts (REITs) so that developers wishing to convert to REIT status would have to pay a charge of just 2 per cent of the market value of the properties concerned compared with some estimates as high as 20 per cent. It added more than £1.5 billion to the value of the UK's four largest property firms as shares in Land Securities surged 13 per cent, or 237p, to 2,080p, British Lan gained 12 per cent, or 138p, to 1,300p, Hammerson rose 9.2 per cent, or 110p, to 1,300p , and Liberty International also ticked up 85p to 1,225p. Slough Estates rose 13.4 per cent, or 81p, to 685p..... Edited March 23, 2006 by Riser Quote Link to comment Share on other sites More sharing options...
simon99 Posted March 23, 2006 Share Posted March 23, 2006 This was why I couldn't understand the delight at the scrapping of SIPP's, it was just replaced with an even bigger monster. Quote Link to comment Share on other sites More sharing options...
othello Posted March 23, 2006 Share Posted March 23, 2006 Can someone explain what REITS are (pref in 20 words or less)? I'd be grateful. Quote Link to comment Share on other sites More sharing options...
othello Posted March 23, 2006 Share Posted March 23, 2006 Can someone explain what REITS are (pref in 20 words or less)? I'd be grateful. Clearly not Quote Link to comment Share on other sites More sharing options...
Guest consa Posted March 23, 2006 Share Posted March 23, 2006 Clearly not http://www.investopedia.com/terms/r/reit.asp Quote Link to comment Share on other sites More sharing options...
Realistbear Posted March 23, 2006 Share Posted March 23, 2006 They have had REITS in the US for years and it has not prevented their market from a crash. The economic cycle cannot be beaten by new investment products. IR are the nemesis and the way we pay for our "free" HPI lunch. Quote Link to comment Share on other sites More sharing options...
Father Fred Posted March 23, 2006 Share Posted March 23, 2006 Those big companies mentioned are all mainly holders and developers of commercial property. BUT, will REITs decide to invest in residential and a big way. Will they be able to operate with economies of scale, and be able to make a tax-free profit from residential property at 5% yields? http://money.guardian.co.uk/thebudget2004/...1171321,00.html Quote Link to comment Share on other sites More sharing options...
trompe le monde Posted March 24, 2006 Share Posted March 24, 2006 I liked the comment on the BBC Budget coverage, as to why the American term 'Real Estate' was used in this context, when we obviously prefer the term 'Property' in the UK. After all, who would invest in the PITS..... TLM Quote Link to comment Share on other sites More sharing options...
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