The Realstone Development Fund has direct ownership of most of its buildings. With direct ownership, taxes on income and capital generated by the buildings are collected from the Fund itself, which is generally subject to lower tax rates than ordinary taxpayers (individuals or corporations), while shareholders in the Fund are exempt from tax. Additionally, withholding tax is not applied to any such income before it is paid out.
Shareholders are only liable for wealth and income tax on Fund assets not directly invested in real estate. Tax is withheld before any such income is paid out.
Investing in a real estate fund thus has many advantages in terms of portfolio diversification, professional portfolio management, reduction of administration fees, negotiability, transparency, liquidity, security, estate planning and tax optimisation.