Strong Profitability
A higher yield vis-a-vis investment risks
is expected, driven by real estate investment based on precise
market reviews and analyses. An additional yield is possible with
higher values in real estate through professional and systematic
asset management such as remodeling.
Solid Stability
As investments are in the form of real
estate, risks of investment value are minimized even amid
inflation. In the worst case scenario, the loss of investment
principal can be minimized by disposing of real estate holdings,
and a stable shareholder return is possible through rational
investment analyses on lease fees, vacancy rates and maintenance
fees.
Convenient Liquidity
As for listed REITs, stocks held can be
converted into cash, if necessary.
Tax breaks
Income tax is almost nil once over 90% of the income available
for dividends are distributed(Article 51-2 of the Income Tax Act)
Progressive taxation (the maximum tax rate of 0.7%) is applied
for property taxes and comprehensive real estate taxes for land
upon direct investment. However, the land property tax of 0.2% is
singularly applied upon REITs-based investments, and excluded
from the list of investments subject to comprehensive real estate
taxation.
(Local Tax Article 106 and Enforcement
Ordinance Article 102)
Expansion of Investment Opportunities
Investment opportunities in large-scale
real estate projects are available even with small-scale funds
including those of personal investors.