Equity Investment Specialists, Maat Group, continues to bring value to the national commercial landscape and investors alike.
Metropol talks to Managing Director Neil Tuffin about how commercial property equity investment can make your dollar work harder for you.
What does the Maat Group offer and what does your name mean?
Maat Group is a commercial property equity investment company. Maat Group adopted the Egyptian goddess Maat as its symbol; she’s the goddess of truth, justice and balance.
What is commercial property equity investment?
It’s the purchase of commercial property as a direct property investment. By investing as a shareholder in a company formed for the purchase of an investment, the investor is able to purchase a larger property with a better yield than what is available if purchasing as an individual. The shareholder becomes a part owner in the property, along with other investors. The property is fully managed for investors including property management, financial management and general administrative duties.
How long do investors have to leave their money in the investment for?
Our equity investments don’t have any fixed time frame. Investors are encouraged to remain in the investment long term as this passive investment can provide capital gain over time. If circumstances arise that mean an investor has to exit, we can assist with this and facilitate the sale of these shares to the incoming investor. You can contact us for further clarification on our exit process at any time.
Do you charge any investment fees?
The company formed to purchase the investment property pays for the management for the property along with additional expenses such as accounting or audit fees. These are paid from the rental income of the property and don’t affect the distribution rate. The fee structure is set out in the product disclosure statement (PDS) which is available at the time of investment.
How often do investors receive distribution payments from you and is it taxed?
We distribute our returns on investments on the 20th day of each month. If you’re invested as an individual or as a joint partnership, we’re required to deduct your tax portion prior to your distribution payment each month. Our investments are run as a PIE investment with the tax rates of 10.5 percent, 17.5 percent and 28 percent. If you’re invested under a trust or company, you may elect a zero percent tax rate for your investment.
What is the minimum investment?
The minimum investment for our equity investments is $25,000. You can purchase multiple shares in each investment up to a maximum of 20 percent of the share parcels on offer.
Do investors earn capital gain?
The capital gain would be paid at the time of the sale of the property. Investors may receive a capital gain payment in addition to their original share price if the property is sold in excess of the original purchase price