Property 24/10 - 480

Invest in new development buy-to-let property and get a tax write-off
It’s not often that tax is associated with anything pleasant, however, a section of the Income Tax Act – Section 13sex – offers massive tax advantages for property investors, with clued up investors being able to claim millions of rands back from SARS.

Coupled with this, innovative new property developments and the current economic climate have also provided great opportunities for property investors to grow their portfolio and take advantage of SARS’ tax write-offs.

Rob Stefanutto, who heads up developments for Dogon Group Properties, explains that property buyers can leverage Section 13sex of the Income Tax Act in their favour, to get tax returns from their buy-to-let property portfolios. “There are many ways to minimise tax within your property portfolio, but no tax incentive comes close to the impact Section 13sex of the income tax act can have.”

“The tax write-offs obtainable through Section 13sex come into effect when property investors buy a minimum of five residential units for rental. Purchasers are then able to off-set their investment by depreciating the cost of the units at an accelerated rate of 5% a year over 20 years.”

How to find your last-minute holiday rental and avoid scamsters
With the annual holiday season upon us, it is easy to get caught up in the hype of a good online deal and before you know it, you are scammed out of your hard earned money and have no holiday to show for it either.

Leigh Mulholland of Seeff ShortStay for Hout Bay, Llandudno and Southern Suburbs, says that with the explosion of online holiday and accommodation advertising and booking sites, it is easy to get caught. She gives some advice and a few important “need to knows” when it comes to booking holiday accommodation.

Do your homework, she says. Research to ensure you know who you are booking with as there are so many stories of scammers. Check the legitimacy of the booking agent or site as well as the establishment being advertised. Never transfer money unless you are one hundred percent sure of the legitimacy of the advert and booking agent or site, she says. Be especially scrupulous when it comes to unknown sites.

Five essentials for estate agents to remain relevant in changing times
In his annual open letter to shareholders this year, Amazon CEO Jeff Bezos emphasised the “divine discontent” of consumers as the driving force behind today’s seemingly unending quest for better service. His claim that “yesterday’s ‘wow’ quickly becomes today’s “ordinary’” rings true for any number of industries.

However, Schalk van der Merwe, Franchisee for the Rawson Properties Helderberg Group, says this concept is particularly significant for real estate agencies striving to remain relevant in today’s world.

“We’re all going through a phase of disruption and transformation and are having to reassess our systems and processes in light of constantly evolving consumer expectations.”

According to Van der Merwe, service-driven real estate is no longer a luxury, but a necessity. To achieve the kind of next-level service that he believes to be the future of real estate, Van der Merwe says these five steps form an essential foundation:

Ten SA REITs among South Africa’s top listed companies
South African REITs (real estate investment trusts) have once again excelled among the country’s top companies earning the most wealth and value for shareholders.

SA REITs made up a significant 10% of the Top 100 Companies listed on the JSE to deliver the highest compound annual growth rate (CAGR) over five years. Significantly, nine of the top-performing SA REITs were among only 75 of the publically quoted companies on the JSE able to deliver positive CAGR for their investors over the five years.

“SA REITs have performed relatively well for investors in a very challenging business environment. This solid performance shows that listed real estate is a defensive investment through cycles,” reports Estienne de Klerk, Chairman of the SA REIT Association.

The SA REIT Association represents SA’s listed REIT sector and its members comprise all 30-plus listed SA REITs with a market capitalisation of some R300 billion. Through their property assets and responsible investment in SA’s built environment, these active businesses influence our economy and the quality of people's lives.

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