Zane De Decker on what makes 12J products attractive to investors

The world of investment is ever-evolving and dynamic, with new opportunities arising all the time. One such opportunity that has been making waves recently is the realm of section 12J investing. In a recent development, property and hospitality have now become an attractive asset class for 12J investments, thanks to Anuva Investments in partnership with Flyt Property Investments. Zane De Decker, the Managing Director of Flyt Property Investments, shed light on this groundbreaking move in a recent interview with CNBC Africa. De Decker explained that the 12J investment space has seen tremendous growth in recent years, thanks to clear guidelines set by SARS on how investments should be structured. This clarity has been particularly beneficial for the hospitality property arena, providing certainty to investors, shareholders, and fund managers on how funds are managed and operated. Despite the initial exclusion of property as an asset class in 12J investments, recent changes have opened up new avenues for investors to explore. The decision to include property in 12J investments was made about two to three years ago, coinciding with a revamp of the legislation governing these investments. This move has sparked a surge in the hospitality property sector, offering investors a unique opportunity to invest in assets backed by real estate with a hotel operator and financial solutions in place. De Decker noted that the investment appetite for these products has grown significantly over the past two years, with investments nearly doubling in the last 24 months compared to previous years. One of the key drivers of this growth is the immediate tax relief offered by 12J investments, providing investors with a boost in a struggling economy. With businesses facing challenges and the economy under pressure, the tax relief component of 12J investments is a welcomed incentive for investors looking for sound investment opportunities. De Decker emphasized that this tax relief, coupled with the underlying investments in the hospitality property sector, makes these products highly attractive, especially in the current economic climate. Despite the challenging economic landscape, 12J investments in the hospitality property arena continue to stand out as a beacon of growth and opportunity for investors. The tax relief aspect of these investments provides investors with an immediate benefit, setting them apart from other asset classes. As the economy grapples with uncertainties and challenges, the 12J space offers a ray of hope for investors looking to maximize their returns and diversify their portfolios. In conclusion, the landscape of 12J investments is evolving, with new opportunities emerging in the hospitality property sector. Investors seeking tax benefits, sound investment opportunities, and diversification can now explore the burgeoning space of 12J investments in property and hospitality. With clear guidelines, growing investment appetite, and immediate tax relief, these products are reshaping the investment landscape and offering investors a unique avenue to grow their wealth and navigate the uncertainties of the current economic climate.