Make owning your dream home a reality with help from the JSE 
This festive season avoid the over spending rush and invest with a tax-free savings account  

Johannesburg, 3 November 2016: Buying a house is an exciting life milestone, but it can also be a little intimidating as this will probably be one of the most expensive purchases you’ll ever make. If you’ve been thinking of making that dream home a reality, avoid overspending this festive season and start in​​vesting instead – with a tax-free savings account (TFSA).

In today’s economic climate, saving up the money for a deposit on a new home is one of the biggest barriers to people achieving their dream of owning property. Many people often underestimate what the costs entail, such as transfer costs, attorneys’ and bond fees.

Being able to offer the bank a sizeable deposit is a sure way for getting your home loan approved, and the JSE TFSA is a hassle-free way to help you on your savings journey.  

“One of the common barriers to investing is the lack of financial knowledge about financial products. Our brokers have been carefully selected to guide investors along their investment and savings journey, by providing them with information and personalised financial advice,” comments Mpho Ledwaba, Head of Marketing at the JSE.

A TFSA is an account that provides tax benefits for saving and the JSE TFSA provides investors with a way to invest in Exchange Traded Funds (ETFs[1]). ETFs are ideal for first-time investors looking to invest in the stock market as they provide a basket of JSE-listed indices by tracking a particular stock market index, such as the FTSE JSE Top 40. 

“It is our intention to support and improve South Africa’s culture of savings by providing investment products through a tax-free savings account. Our offering of TFSAs add to the JSE’s range of existing initiatives aimed at improving individuals to  participate on the exchange,” continues Ledwaba.

For instance, the JSE runs the annual JSE Investment Challenge, intended to increase understanding about financial markets amongst high school learners and tertiary students. In addition, the JSE also facilitates Power Hour sessions which are targeted at investors who are already invested in the JSE, but also looking to improve their knowledge of financial markets. For those who will like to get in-depth knowledge about the running of the exchange and the different products, the online learning modules​​ are ideal for getting this knowledge at the comfort of your own home.

The tax-free savings legislation was initiated by the National Treasury to improve savings amongst South Africans and reduce household indebtedness. The JSE’s TFSA intends to align with the National Treasury’s goal as well as giving investors access to the exchange in a cost-effective manner. The JSE TFSA caters to investors across a range of financial fitness, by offering the flexibility to either make a monthly contribution or a once off lump-sum, depending on your preference and needs.

The JSE is committed to making the exchange more accessible. Ledwaba concludes by saying, “Whether it be saving for your financial future; participating in the Investment Challenge or Power Hour session, our intention is to ensure that South Africans establish a culture of investing. Investing need not be a daunting task.  We hope to make investing easy and more affordable for all South Africans.” 

Key features of the JSE Tax-Free Savings Account
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  • Investors are allowed to invest up to R30 000 per annum in monthly payments and limited to a R500 000 lifetime contribution.
  • Investors invest in one of the JSE-listed Exchange-Traded Funds (ETFs) which provide diversification by buying into a basket of JSE-listed investment products.
  • You have the flexibility to either contribute monthly or as a once-off lump sum depending on your needs (limits apply).
  • No Dividend Withholding Tax on dividends earned.
  • No Capital Gains Tax.
  • No Securities Transfer Tax on purchases.​

As the JSE is not qualified to offer investors financial advice, the exchange has partnered with an array of stockbrokers who can provide tailored financial advice for each investor’s investment journey.  To find out more, please visit: https://www.jse.co.za/taxfree

ENDS

ABOUT THE JSE 
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 130 years. It connects buyers and sellers i​n equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. 

Issued by:
H+K Strategies South Africa 
Mildred Thabane
Tel: +27 11 463 2198 

JSE contact: 
Pheliswa Mayekiso ​
Media and Internal Communications Manager
Tel: +27 11 520 7495