Academic literature on the topic 'Real estate investment – Taxation – South Africa'

Purpose The South African listed property market has changed its legal basis from property loan stock companies and property unit trusts to adopt the more familiar international structure, real estate investment trusts. The main distinction is how shareholding is structured and investment returns are paid out to shareholders, which results in a different tax treatment. It is hoped that this change would attract more foreign investment, but it is questionable if this is sufficient to convince global investors who, amidst a seeming worsening of the stability in the political and economic environment, would probably need more insight into aspects such as investment decision making within these South African organisations. The paper aims to discuss these issues. Design/methodology/approach Using a balanced scorecard (BSC) framework, this study investigates the relevance of investment decision-making frameworks in South Africa. A survey using a sample of institutional investors that are included in the South African Property Market Index was conducted. Findings The study found similarities in decision-making priorities of South African institutional investors to those of previous studies. With the focus on retail property, tenant mix and secondary to that, quality of the centre management team is found to be important for forecasting expected returns in a retail investment decision environment. Diversification strategies were found to have similar results to previous studies, leaning more towards geographic location than economic location. Further, the study suggested the use of a BSC framework, linking the financial information and different financial ratios to nonfinancial aspects that need specific consideration in a retail investment environment. Research limitations/implications Retail property is considered to be of particular concern due to the business enterprise value that could be created if superior management techniques are applied. The investment decision stage concerned with forecasting expected returns relies on financial and quantitative models such as those derived from Modern Portfolio Theory. In a shopping mall environment, however, future performance is driven by nonfinancial factors, for example, tenant mix and superior customer experience. Therefore, forecasting expected returns in a retail environment requires a nuanced approach relative to other commercial property sectors. Originality/value The paper is considered to be original in its analysis of the retail real estate market in South Africa. This offers new insight into retail properties specifically, but also how investors in South Africa react to decision-making practices. This adds value in the internationalisation of the property market and the consistency and transparent practices applied globally.

The listed property sector in South Africa has grown to a size which could be considered to be a good representation of the income producing property market in general. Stock market listed property investment funds offer the opportunity to compare indirect property investment to direct property investment, which could bridge the gap between irrational investment behaviour and intrinsic asset values. This study investigates the relationship between listed property share prices and the property values in listed property funds. The share prices are correlated with various factors, such as the accounting ratios of the companies, the financial statements of the companies and general economic variables. The outcome of the study is an explanation of the behaviour of listed property shares, and its relationship to the direct property market and the general economy. This would assist in the explanation of market behaviour and provides the opportunity to more accurately predict portfolio asset values, which might be used in the valuation of individual real estate assets.

The objective of the study is to investigate the relationship between the International Financial Reporting Standard (IFRS 1) and the value relevance (VR) of accounting information. In this study forty-six companies listed on the Johannesburg Stock Exchange during the period 1993 to 2017. Panel data is used to compare the period before and after IFRS. The companies in the sample are composed of the following sectors; mining, manufacturing, banks and investment companies, real estate, general industry, retailers, construction and material, chemical and software, and computers. Based on the yearly financial reports published by public companies in South Africa, the study employed the Cookes (1992) Unweighted Disclosure Index to measure the level of compliance in South Africa. Fifty-six disclosure elements from IFRS 1 were utilized to measure the compliance level. Thereafter Ohlson (1995) Model is used with dummy variables to compare the pre-and post-IFRS period. First, the study reflected that most of the South African companies exhibit higher compliance rates ranging from 87 to 93.417 which is impressive. On the other hand, 4 companies recorded Medium level compliance that is between 60% to 79% compliance level. The findings further revealed that there is a significant positive association between compliance with IFRS 1 and the value relevance of accounting information.

Purpose Estimation of the rental price of a residential property is important to real estate investors, financial institutions, buyers and the government. These estimates provide information for assessing the economic viability and the tax accruable, respectively. The purpose of this study is to develop a neural network model for estimating the rental prices of residential properties in Cape Town, South Africa. Design/methodology/approach Data were collected on 14 property attributes and the rental prices were collected from relevant sources. The neural network algorithm was used for model estimation and validation. The data relating to 286 residential properties were collected in 2018. Findings The results show that the predictive accuracy of the developed neural network model is 78.95 per cent. Based on the sensitivity analysis of the model, it was revealed that balcony and floor area have the most significant impact on the rental price of residential properties. However, parking type and swimming pool had the least impact on rental price. Also, the availability of garden and proximity of police station had a low impact on rental price when compared to balcony. Practical implications In the light of these results, the developed neural network model could be used to estimate rental price for taxation. Also, the significant variables identified need to be included in the designs of new residential homes and this would ensure optimal returns to the investors. Originality/value A number of studies have shown that crime influences the value of residential properties. However, to the best of the authors’ knowledge, there is limited research investigating this relationship within the South African context.

Abstract As Zambia’s chief administrative centre and a major financial, transportation, and manufacturing hub for the country, the City of Lusaka has become one of the fasted growing cities in Southern Africa. Encouraged by the Chinese government’s ‘going out’ policy, Chinese investment and trade with Zambia have risen dramatically since the 2000s. Chinese investment is increasingly shaping the growth of Lusaka City and its hinterland in significant ways. On the other hand, South Africa as a regional geo-economic power has also amplified its strategic engagement with Lusaka. The paper explores how these two geo-economic powers have shaped the development of the City of Lusaka. Findings show that investments from South Africa into the City are private capital backed and are predominantly in the retail and real estate sectors. Chinese engagement in the city are dominated by large government-related construction projects, which have often been state-backed. Analysing the findings through the lens of urban assemblage and polarisation, the paper argues that the City is increasingly becoming more socio-spatially divided with the poor being more adversely affected by the nature and location of investments.

The middle class is the basis of socio-economic stability of the state, acts as a generator of economic, social, cultural and institutional transformations. The consumption model of this class is above the subsistence level, which allows them to invest in production activities, to accumulate physical and human capital. Increasing income leads to increased spending on health and education, leisure and entertainment, leads to an increase in the range of consumer goods. Quantitative and qualitative parameters of the middle-class assessment serve as a platform for characterizing living standards and redistribution of economic growth in the country. The tasks of expanding the middle class, combating poverty, smoothing socio-economic asymmetries and imbalances, and improving the well-being of the population are at the heart of the 2030 Agenda for Sustainable Development. Globally, the negative effects of the Covid-19 pandemic create obstacles to achieving the UN Sustainable Development Goals. The world government should reduce the number of poor by at least half by 2030 (Sustainable Development Goal 1, Target 1.2), expand opportunities and promote social, economic and political inclusion of all segments of the population, regardless of their economic status (Sustainable Development Goal 10, Target 10.2), but the pandemic makes its adjustments. In regions such as South Asia and sub-Saharan Africa, instead of reducing poverty, it has risen to 1990 levels. The middle class has suffered the most in South Asia and the Asia-Pacific region. There is no doubt that the Covid-19 pandemic will provoke the deepest socio-economic crisis in 100 years. Representatives of the middle class in India, Brazil, South Africa, Thailand and Ukraine continue to record rising food and real estate prices, their purchasing power is declining, and central banks are forced to tighten monetary policy prematurely. In order for the middle class to stimulate economic growth, increase investment, maintain adequate consumption, use public and private services, national governments and the international community must respond quickly to the crises triggered by Covid-19 and take the necessary measures to eliminate them in order to ensure a decent standard of living above the poverty line.

Real Estate Investment Trusts (REIT’s) provide certain benefits for investors as opposed to them directly investing in property. Many countries worldwide have already established tax systems for REIT’s which give natural persons and companies the benefit of not outlaying substantial capital, and provide certain tax dispensations to them. The concept of a REIT is new to South Africa. The vehicles that have been used by investors in the past to invest indirectly in property have been Property Unit Trusts (PUTs) and Property Loan Stock Companies (PLS). These different types of entities have had different taxation rules applied to them, as they differed in legal entity, i.e. a trust versus a company. The different types of entity were historically a deterrent to foreign investors who preferred to invest in countries that had the REIT structure and certain tax dispensations. The National Treasury and the South African Revenue Service (SARS) decided to collaborate in this matter so as to encourage foreign property investment, and launched with effect from 1 April 2013, a new REIT tax dispensation for investors in property portfolios. The REIT created a unified regime in South Africa. All portfolios wanting to call themselves REITs had to qualify under certain requirements, and then they would be eligible for the new section 25BB tax dispensation. The South African REIT market is relatively new when compared to the Australian REIT market, which is the second largest in the world. The Australian REIT market has been around for approximately forty three years more than the South African REIT market. The Australian REIT regime is analysed in terms of how REITs are taxed in that country. The final chapter provides a comparison between the South African and Australian REIT regimes. The major differences are identified as to how each country taxes the REITs and the respective shareholders, and from these a few proposals are made which could improve the South African REIT regime in order for it to stand up to worldwide scrutiny.

Includes bibliographical references.
In this dissertation, the author focuses on the practical tax issues relating to the recently adopted South African Real Estate Investment Trust tax dispensation, by discussing international principles of Real Estate Investment Trust taxation and two foreign regimes, i.e. the US and UK Real Estate Investment Trust regimes which, it is understood, were used as a basis for the South African legislation. In addition, the dissertation discusses the details of the South African property investment vehicles regime pre- 1 April 2013, and the new Real Estate Investment Trust tax regime applicable from 1 April 2013. Furthermore, it looks at suggestions and possible improvement to the taxation of Real Estate Investment Trusts in South Africa and whether the proposed amendments released by National Treasury, on 4 July 2013, satisfactorily address the issues raised in this dissertation.

Thesis (MComm)--University of Stellenbosch, 2006.
AFRIKAANSE OPSOMMING: Kollektiewe Beleggingskemas in Effekte ("KBS in Effekte") en Kollektiewe Beleggingskemas in Eiendom ("KBS in Eiendom") is besigheidstrukture wat baie gewild is in Suid-Afrika. Desondanks bestaan daar nog heelwat onsekerhede rondom die belastinghantering van hierdie twee tipes Kollektiewe Beleggingskemas ("KBS"). Die Suid-Afrikaanse KBS industrie is In multi biljoen rand industrie hoofsaaklik as gevolg van die feit dat dit uitstekende beleggingsgeleenthede vir Jan en alleman asook groot finansiële instellings soos versekeraars bied. Dit is dus logies om te verwag dat die belastinghantering van KBS met redelike sekerheid gereguleer word. In KBS kan of as In trust opgerig word of as In oop beleggingsmaatskappy. Die belastinghantering van In KBS hang dus daarvan af of dit as In trust of oop beleggingsmaatskappy opgerig is. Die Inkomstebelastingwet No. 58 van 1962 ("die Inkomstebelastingwet") bevat inkomsteen kapitaalwinsbelastingbepalings wat uitdruklik die belastinghantering van KBS in Effekte en KBS in Eiendom reguleer ("die spesiale belastingreels"). In KBS in Effekte word vir belastingdoeleindes as In maatskappy beskou en so hanteer. Dit is nie maklik om vas te stel wat die wetgewer se onderliggende bedoeling was toe daar besluit is om In KBS in Effekte as In maatskappy te hanteer. Dit blyk wei dat hierdie besluit van die wetgewer nie deeglik deurdink is nie na aanleiding van die verskeie praktiese en teoretiese probleme wat met die belastinghantering van KBS in Effekte bestaan. Meeste van hierdie probleme is In direkte gevolg van die besluit om In KBS in Effekte vir belastingdoeleindes as In maatskappy te hanteer. Een die probleme wat in die konteks van KBS in Effekte bestaan hou verband met die vraag of die geleibuisbeginsel, wat bepaal dat inkomste wat deur In trust aan sy begunstigdes uitgekeer word hul aard en karakter behou, in die konteks van In KBS in Effekte (wat as In trust opgerig is) toepassing vind. Alhoewel die KBS in Effekte as In trust opgerig is, word dit vir belastingdoeleindes as 'n maatskappy hanteer en dit is duidelik dat die geleibuisbeginsel nie in die konteks van 'n maatskappy geld nie. Na oorweging van die regsaard van 'n KBS in Effekte wat as 'n trust opgerig is asook die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet wat ten opsigte van KBS in Efekte geld, word daar aan die hand gedoen dat die geleibuisbeginsel wei toepassing sal vind in die geval van 'n KBS in Effekte was as 'n trust opgerig is. Die gevolge van die vrystellingsbepalings in artikel 10 van die Inkomstebelastingwet is sodanig dat die inkomste wat die KBS in Effekte (wat as 'n trust opgerig is) aan sy begunstigdes uitkeer op dieselfde basis as die geleibuisbeginsel belas word. Gevolglik blyk dit of voorgenoemde standpunt van die skrywer in ooreenstemming met die bedoeling van die wetgewer is. Soortgelyke probleme kom voor in die konteks van die 'verbonde persoon' definisie in artikel 1 van die Inkomstebelastingwet sowel as die terugkoop van 'n deelnemende belang deur 'n KBS in Effekte, veral waar daardie KBS in Effekte as 'n trust opgerig is. Daarteenoor word 'n KBS in Eiendom nie as 'n maatskappy vir belastingdoeleindes hanteer nie. Indien "n KBS in Eiendom dus as 'n trust opgerig is word dit vir belastingdoeleindes soos "n trust hanteer. Ewe-eens, indien 'n KBS in Eiendom as "n oop beleggingsmaatskappy opgerig is, is dit vir aile doeleindes In maatskappy en sal so hanteer word vir belastingdoeleindes. Die belastinghantering van KBS in Eiendom bied ook sekere probleme veral waar die KBS in Eiendom wat as 'n oop beleggingsmaatskappy opgerig is sy aandele terugkoop. In hierdie verband bepaal die Wet op Beheer van Kollektiewe Beleggingskemas No. 45 van 2002 ("die Wet op Beheer van KBS") dat artikel 85 van die Maatskappywet No. 61 van 1973 ("die Maatskappywet") nie ten opsigte van 'n terugkoop van 'n deelnemende belang deur 'n oop beleggingsmaatskappy geld nie. Dit beteken egter nie dat 'n oop beleggingsmaatskappy nie sy eie aandele mag terugkoop nie. Vir belastingdoeleindes sal daar vasgestel moet word of bepalings in die Inkomstebelastingwet wat na artikel 85 van die Maatskappywet verwys, soos paragraaf (c) van die 'dividend' definisie, steeds met betrekking tot sodanige terugkoop toepassing sal vind siende dat die terugkoop nie ingevolge artikel 85 van die Maatskappywet gedoen word nie. Na oorweging van die wye omvang van paragraaf (c) van die 'dividend' definisie, word daar aan die hand gedoen dat paragraaf (c) van die 'dividend' definisie steeds toepassing sal vind om die terugkoop van aandele deur "n oop beleggingsmaatskappy te reguleer, nieteenstaande die feit dat artikel 85 van die Maatskappywet nie op die terugkoop van toepassing is nie.
ENGLISH ABSTRACT: Notwithstanding that Collective Investment Schemes in Securities ("CISS") and Collective Investment Schemes in Property ("CISP") are common business vehicles in the South African economy, there remains uncertainty with regard to the tax treatment of these business structures. The South African Collective Investment Scheme ("CIS") industry is a multibillion rand industry as it offers attractive investment vehicles for the general public as well as for big financial institutions such as insurers. One would therefore think that the tax treatment thereof would be fairly tightly regulated. A CISS and CISP may either be constituted as a trust or as an open ended investment company ("OEIC"). The tax treatment of a CIS differs depending on whether it is constituted as a trust or as an OEIC. The Income Tax Act No. 58 of 1962 ("the Income Tax Act") contains specific income tax and capital gains tax provisions that regulates the tax treatment of CISS and CISP (the "special tax provisions"). For tax purposes, a CISS is deemed to be a company and treated as such. It is difficult to ascertain what the intention of the legislature was in deciding to treat a CISS as a company. It does however seem as if this decision was not thoroughly considered by the legislature based on the fact that the application of the special tax provisions to CISS presents many practical and theoretical problems. Most of these problems are directly attributable to the legislature's decision to treat CISS as companies for tax purposes. For example, one difficulty relates to the question whether the conduit pipe principle, which determines that income distributed by a trust during a year of assessment will retain its nature and character, will find application in respect of a CISS constituted as a trust. For although the CISS is constituted as a trust, it is deemed to be company for tax purposes and it is clear that the conduit pipe principle cannot find application in the instance of a company. However, considering the legal nature of a CISS constituted as a trust, as well as the effect of the exemption provisions in section 10 of the Income Tax Act relating to CISS, it is submitted that the conduit pipe principle will find application in respect of a CISS constituted as a trust. The effect of the exemption provisions is such that the income distributed by a CISS to its investors will be taxed on the same basis as if the conduit pipe principle applied. As such, the aforementioned submission also appears to be in accordance with the intention of legislator. Similar difficulties arise in the context of the 'connected person' definition in section 1 of the Income Tax Act as well as the repurchase of a participatory interest by a CISS, especially where such CISS is constituted as a trust. Contrary to a CISS, a CISP is not deemed to be a company for tax purposes. Thus, where the CISP is constituted as a trust, it will be treated as a trust for tax purposes. By the same token, if the CISP is constituted as an OEIC, it will be a company for all intends and purposes and will therefore be treated as such. The tax treatment of CISP also presents difficulties, especially where it is constituted as an OEIC. In the instance of a repurchase of a participatory interest by a CISP constituted as a OEIC, the Collective Investment Schemes Control Act 45 of 2002 ("CISCA") states that the provisions of section 85 of the Companies Act 61 of 1973 (lithe Companies Act"), does not apply in respect of such repurchase. However, that does not mean that an OEIC may not repurchase its own shares. For tax purposes, one will have to determine whether the provisions in the Income Tax Act relating to section 85 of the Companies Act that governs the repurchase of shares by an OEIC, such as paragraph (c) of the 'dividend income' definition, will still apply to determine the tax consequences of the repurchase. After considering the wide scope of paragraph (c) of the 'dividend' definition, it is submitted that paragraph (c) of the 'dividend' definition will still find application in respect of a repurchase of shares by a OEIC, notwithstanding the fact that the repurchase is not effected in terms of section 85 of the Companies Act.

The government of South African has stated its intentions to enforce a policy which will compel developers of upmarket residential properties to set aside 20 percent of their upmarket residential developments to accommodate affordable housing. The developers on the other hand, have expressed concerns about this approach. The principal aim of this study and of the research was to investigate the desirability of the concept of multi-income-level investment approach to the development of golf estates. A phenomenological strand of qualitative research method was used in the research. The following formed the focal point of the research: • An investigation into the perceptions of the stakeholders, especially the buyers of up-market properties, about mixed-income-level investments in golf estates. • The potential effect of the implementation of including affordable housing in the development of golf estates • An investigation of the perceived effect on the profitability of investments by the inclusion of affordable housing in golf estate properties. • The extent of the contribution of including affordable housing in golf estate developments to the reduction of the current backlog

There is a belief that anything that is specialised tends to outperform the diversified counterparts and this study investigates if this proposition applies in the property industry, specifically the REIT (Real Estate Investment Trust) market in South Africa (SA). The norm is to apply a quantitative methodology when assessing performance but this study follows a qualitative approach in comparing the overall performance between specialised and diversified REITs in SA using non-quantitative metrics. A mix of specialised and diversified REITs in SA were sampled and a multiple case study analysis was done after interviewing senior management in four REITs. A total of four interviews were done with five respondents across four cases. These cases were then analysed using thematic analysis. The respondents were asked questions relating to the REIT they are working for, industrial specialised and diversified REITs performance and the SA property market as a whole. The overall findings suggest that diversified REITs may outperform the specialised REITs in SA currently however, this conclusion depends on a lot of factors. These factors include the analysis time of reference, the economic status of the country (for example, recession), the size of the REIT, the company gearing level, how that specific sector is performing at that particular time relative to others and the management efficiency level. The growth of e-commerce plays a vital role as a factor as well because it is said to be replacing the brick and mortar retail industry therefore, its influence affects the specialised industrial sector performance. For further research, a similar study with a quantitative approach can be considered in order to add to the SA REIT body of knowledge. Furthermore, research on the performance of property companies before and after attaining REIT status could be investigated to determine the REIT status effect on the company. To add on to the SA REIT literature, performance between REITs in different sectors and provinces could be explored.

This research aimed to identify reliable economic data for predictive rent modelling in South Africa and Nigeria, as a contribution towards the growing debate on real estate rental forecasting from the African perspective. The data were obtained from the Iress Expert Database, Stat SA, the Central Bank of Nigeria database (CBN), the National Bureau of Statistics and World Bank. The South African economic data comprised time series for a fifteen-year period between Quarter 1 (Q1), 2003 and Quarter 4 (Q4), 2018. The Nigerian data comprised time series for a ten-year period between Quarter 1 (Q1), 2008 and Quarter 4 (Q4), 2018. The logit model was proposed among others as a macroeconomic modelling approach that captures the future rental directions based on the general economic movements and likely turning points. The model is particularly useful due to its reliance on macroeconomic and indirect/listed real estate data which are more readily available to real estate investment decision-makers. This study identified that coincident indicators and the exchange rate both have positive significant relationships with Johannesburg Stock Exchange (JSE) listed real estate as compelling indicators for the South African market. For the Nigerian listed real estate market indicator, the model also responded to interest rate, the consumer price index and the Treasury Bill Rate (TBR) as reliable indicators. In addition to this, analysis revealed the logit regression framework as an improvement to naïve or ordinary linear rent models in these emerging African real estate markets. The use of macroeconomic modelling proved to be a viable alternative to scarce comparable transaction data which serve as the bedrock of traditional real estate investment appraisal. Thus, a forecasting model for early detection of turning points in commercial real estate rental values in South Africa and Nigeria was developed for use in real estate investment decisions. The study concluded that not all economic indicators lead the listed real estate market. The relationship between the macroeconomy and listed real estate is largely significant, but this could be a positive or negative relationship.
Dissertation (MSc)--University of Pretoria, 2019.
African Real Estate Research (AFRER) for IREBS Foundation.
Construction Economics
MSc
Unrestricted

The access to adequate housing is a constitutional right, in terms of Section 26 (1) of the Constitution of the Republic of South Africa, Act 108 of 1996. Access to housing in South Africa is still an ideal and not a reality. The increase in housing prices reduces affordability, which creates a barrier to the housing market for South Africans to fully participate. The South African housing market is divided, based on the affordability of households, with a gap within the property market. The gap-housing market is a market, which does not receive a government subsidy; and furthermore, it does not qualify for bond finance by the private financial institutions. The gap-housing market includes households that earn between R3,500 to R15,000 per month for residential properties valued between R116,703 to R483,481. The problem is a lack of supply in the gap-housing market to meet the demand; and this is also affected by the poor performance of the subsidy-housing market. The gap-housing market is not traded adequately, due to a lack of supply caused by stricter lending criteria from the banks. The study was conducted by means of reviewing the related literature and by an empirical study. A survey was conducted using the quantitative approach through a distribution of research questionnaires to different organizations within the judgement sample population. The objective of the study is to review the gap-housing market and to make recommendations. The descriptive survey was conducted among specialists that are participating in the South African housing market. The findings of the study suggest that there is a relationship between incentive and participation, as well as a relationship between participation – with access, supply and trading in the gap-housing market. This study will contribute to the South African housing market body of knowledge – by addressing the problem of a gap within the housing market.

A great deal of research has been carried out on residential property values and numerous factors have been identified as having an effect on residential property values. The physical characteristics of properties of properties are the primary factors that determine the market value of residential property. However, factors concerning location are also thought to influence the value of residential properties. These locational factors include, among others, accessibility to highways, airports, schools, parks and public transportation centres. This study examines the effect of another locational factor, namely proximity to a newly built shopping centre. Shopping centres have been increasing in numbers throughout South Africa over the past few decades. These shopping centres are usually situated in close proximity to residential properties. As such, shopping centres that are in close proximity to residential properties can influence property prices. This study makes use of the hedonic price model to assess the price impact of the newly constructed Baywest Mall on the residential properties in the western suburbs of Nelson Mandela, namely Sherwood, Rowallan Park and Kunune Park. On 21 March 2012, the construction of the Baywest Mall was officially announced. This announcement created an area of interest as to whether its construction and completion would have an impact on the prices of residential properties situated in close proximity to the mall. The study period for this study was from 2004 – 2015. This time period is thought to be sufficient to assess the effect of the Baywest Shopping Mall on the residential property prices before and after the announcement of the construction of the mall. As the study period ranged from 2004 – 2015 it was necessary to adjust the sales prices over the years to constant 2015 prices. As such, the ABSA house price index was used in order to eliminate any inflationary effects on the property values over the study period. The results of the study revealed that the newly built Baywest Mall has a statistically significant positive effect on properties in close proximity to the shopping mall. This result enhances the scientific understanding of the effect of commercial land uses, such as, shopping centres, on the value of adjacent residential properties.

This paper aims to investigate the change in corporate debt levels in South Africa from 1994 to 2016, included is an analysis of factors that firms take into consideration when determining the company’s capital structure. This study uses data from firms in the Real Estate and REIT, Travel and Leisure and Construction and Materials sectors listed on the Johannesburg Stock Exchange (JSE). Four different leverage measures are used to determine the change in capital structure for the period under review, as well as six of the most commonly used determinants of capital structure. A high level interpretation of the results reflected the following; an increase in the use of debt in the Travel and Leisure and Construction and Materials Sectors, however a significant decrease in the use of debt relative to equity was seen in the Real Estate and REIT Sector thus skewing the Total Sample findings considerably. An increase in the use of long term debt relative to short term was also found. Results from the analysis of the capital structure determinants varied, with some determinants showing statistical significance. The following determinants were positively related to debt; firm size, asset tangibility and growth while the determinants; cost of debt and tax had a negative relationship. The relationship between profitability and leverage was varied.

This research will focus on the influence of legislation (as indicated in this research) on the investment decision in residential income-producing property. Assumptions, as recorded in the hypothesis of this study, indicate that the legislation had a changing influence on the investment decision in residential income-producing property in comparison to the time period prior to the promulgation of the legislation. The research methodology will be based on a comparative analysis of the current legislation and the proposed Draft Amendment Bill. This analysis will be tested by means of a case study analysis incorporating a phenomenological study based on written data. The problems, sub-problems and hypothesis will be addressed and tested in this research in conjunction with the prescribed research methodology. This research is concluded by means of a synopsis and recommendations.