Web Bytes 203

Further R75bn 'is needed for redistribution'
Business Report - South Africa
Cape Town - The land affairs department is asking the treasury for R75 billion over the next five years to finance the land redistribution programme so that it can reach the target of placing 30 percent of farmland in the hands of black people by 2014.

Thozi Gwanya, the land affairs director-general, said this amount was needed "over and above" about R3 billion a year already granted by the treasury for land reform.

Between R25 billion and R28 billion is expected to be spent on land reform by 2014 in terms of current budgetary projections. Gwanya indicated that current and projected spending constituted about a quarter of the department's needs.
Business Report

"Loaded" deals can seriously unhinge applications
RodneyHayter.com - South Africa
A "loaded deal" is where the purchase price in the offer to purchase for immovable property is not reflective of the true purchase price for the property in that the purchase price includes a factitious deposit or the transfer duty and conveyancer's fees.

In Law, according to an article in the ERA Property News Chat newsletter, such an agreement may be found to be fraudulent and the banks have stated that they are taking this approach.
RodneyHayter.com

Gazunder warning to house sellers
Metro.co.uk - UK
Home sellers be aware of being gazundered
Half of house sales in some areas are being gazundered, the first major investigation into the practice has revealed.

In most cases, sellers are forced to accept last-minute offers which can be tens of thousands of pounds lower than first agreed to avoid having to put their homes back on the market.
The practice - the opposite of gazumping - is being seen as a sign of a seriously deflated property market badly hit by the credit crunch.
Metro.co.uk

VAT: What you pay for property speculation
Realestateweb.co.za - South Africa

Want to know how Value Added Tax works when buying off-plan to make quick money? Tax expert answers Realestateweb visitor's question.

Tax expert Paul Ferreira, a Partner with Maitland's advisory division, answers a question for a Realestateweb.co.za reader.

Question
I am VAT registered and have bought a seafront erf for speculation.

I am purchasing from a developer and am paying VAT on the transaction.

May I claim the VAT on the transaction, even though it is residential property?

I understand that once sold by me I will have to pay VAT to the South African Revenue Service.
RealEstate Web