MyMoney Online, Personal Finance with Warren Ingram

Right now, a Tax Free Savings Account (TFSA) can yield up to 13%. Here’s how…

pixabay.com, 2019

Sometimes you have to go against the tide to make money in the long term.

Warren Ingram, Galileo Capital

Tax Free Savings Accounts (TFSA) are great “wrappers” for a myriad of investments.

The best asset class to “wrap” inside a TFSA right now is "Listed Property", said Galileo Capital Financial Advisor Warren Ingram on Bruce Whitfield’s The Money Show.

Listed Property

Last year was extremely difficult for most asset classes, but listed property took the biggest knock, delivering -25%.

South Africa’s listed property market is quite small when compared to global standards.

The index is also disproportionate, with Growthpoint and Redefine comprising 37% of it.

Current risks

  • The ongoing investigation of the Resilient Group.

  • Land expropriation causing uncertainty.

  • Global property uncertainty with Brexit and rising interest rates in the US.

Where to from here?

Some of the better companies, said Ingram, are yielding 13% per year.

Some property unit trusts have yields of 11% while the SA Listed Property Index is currently offering a yield of 9%.

This year might still be tough for listed property, but Ingram expects the cycle to turn.

When it does, he said, there will be a handsome recovery.

In the interim, with yields this high, you will be getting a good, tax-free income.

For more detail listen to the interview in the audio below.

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