You can use margin without breaking a professional trader trader rule, as long as your taxable portfolio income at least matches the interest payments on your margin.
IMO, probably not.
Trying to diversify away from a 100% stocks portfolio and increasing home bias a bit, softening the dips while trying to maintain returns.
But to be honest I still haven’t found a really convincing source that says “adding x% of Swiss RE with yearly rebalancing outperforms a pure world stocks portfolio”.
That’s interesting, isn’t it a zero sum game for the investor then? Yes you pay no taxes, but taxes are deducted from the fund performance?
It’s not a zero sum game because corporate taxes are different than personal taxes
For income for sure corporate tax is lower than individuals. Maybe for capital gains as well but I am not completely sure
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I am in same boat. I am not even trying to outperform. I just think that Swiss RE funds have low return and very high price already (based on cash flows multiple) . So I don’t feel confident to expect a lot of capital appreciation
And I am wondering if the risk of investing in high price asset is worth taking for a small return during accumulation phase
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This sounds reasonable, but do we have actual evidence for this? Can we quantify corporate tax paid by the fund?
Even if there was a tax advantage, there’s still a whopping 0.77% TER on that fund. So I’m still not sure whether or not there’s any advantage, apart from the (mostly?) tax free dividends? Which amounts to xx% TER?
Can someone actually do the exact math on this?
Here is an attempt by Poorswiss
But you always need to be cautious that comparison is tough in these cases because you might not have a similar profile of fund with similar TER and similar underlying assets in both Direct and Indirect category
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So as the tax rate for RE is about 15%, it’s beneficial to invest in direct RE when one’s marginal tax rate is over 15%? Or am I missing something?
That’s true for dividends.
And I think something similar would be applicable for capital gains tax too but I don’t know if it can be so explicit as capital gains is applicable based on location of property
Does someone have experience with this REIT? It has a very low Agio of 11% and 2.5% of dividend and low volatility it seems? Can you recommend it or are there better alternatives?
https://boerse.raiffeisen.ch/fonds/detail/22518230?exchangeid=3233
I think Teheran Agio is low because it’s a mix of commercial and residential fund. And these days commercial properties are not so cool.
In my view distribution yield is better than UBS DRPF. But still for me REIT valued with 40 times earning is less interesting versus equities
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Does any know what exactly this subscription in capitalisation plan means?
It says investors can buy units at 14.90 CHF per unit.
Are there advantages to subscribe here vs buying standard unit?
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Is the subscription open to public? (DRPF currently trades at 20 CHF, so it’s a really good deal to buy at NAV, I suspect retail doesn’t have access to it).
I couldn’t even understand what this actually means. This is on their website but doesn’t say anything about how to buy.
Maybe this is like IPO where people can subscribe and then eventually get shares at market price. Could it be ?
Actually I think the current holders are the ones getting access to the subscription.
Prospectus says holding 10 gives you right to one, if you hold it you can probably decide what you do with it (pay 14 and get the share, or trade the subscription right away¸which should normally trade equal to the premium)
I see. Thanks for explanation.
I guess all this is priced in the current price already then.
may i ask if ETF owners are considered owners too? Or only the fund unit owners?
I mean as far as i can see, this product is traded as an ETF on SIX.
Ticker symbol DRPF
However, the name of the fund is UBS Direct real estate fund. So I was thinking that there is also a possibility to buy the fund units directly through UBS and only then someone would be considered owner.
Or once someone buys ETF units on IBKR or SQ, they are considered owners & receive such subscription info?
Why? 2.17 post tax equates to 3.35% pre Tax. It makes ahuge difference if you get 3.35 or 1.8%. Besides - 1.8% will be gone in 6 Months. The 2.17% will remain. Besides 2: the equity on the RE fund will grow with inflation, whereas your savings account’s base ammount will not grow.
Further, don‘t forget another 0.4% Wealth Tax Benefit, after Tax on Income Effect thats another 0.61%… so your fund yields 2.17% but you would need a Bank account to yield 3.9% PLUS grow with Inflation - just to match this
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