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Health of building industry requires intensive care says latest Rode's Report on SA Property Market
Rode.co.za - South Africa
Good news in the latest Rode's Report is that office rentals have, thus far, remained fairly resistant to the scourge of the economic slowdown.

In the first quarter of 2009, impressive rental growth of 19% was still recorded in Pretoria and Durban decentralized, while in Cape Town and Johannesburg decentralized rentals were up by 14% and 8% respectively. In the CBDs, Johannesburg produced the best performance with nominal rentals growing by a notable 24%. Rentals in Durban CBD were up by 20% while 4% growth was achieved in both the Pretoria and Cape Town CBDs.

Tax break looms for property investors
RealEstateWeb - South Africa
Want to transfer property out of a company or close corporation? Govt may give you second opportunity to do so, tax-free.

David Warneke, a tax specialist and partner at Cameron & Prentice Chartered Accountants, spells out how a new draft law will work in favour of property investors.

The Draft 2009 Taxation Laws Amendments contain a proposal that, if enacted, will allow individuals to transfer their domestic residence out of a company or close-corporation, for a period of two years, tax-free. The motivation for the proposal was to allow such entities to avoid the payment of annual duties.

Although similar relief was previously available, where the residence had to be acquired out of the company or close corporation by 30 September 2002, the current proposal is narrower than the previous relief in a number of respects.

Sellers face several dangers
Property24 - South Africa
The current economic climate has sellers in a bind and facing several dangers which could be exploited by unscrupulous buyers.

These risks, says Ivan Neethling, Chairman of the Western Cape Institute of Estate Agents, has led to some sellers being pressured to accept prices that are not market related, i.e. well below the 15% to 20% discounted rates now prevailing.

This, he added, is particularly likely in the lower price brackets when owners are retrenched - and where there is often a dire shortage of funds to tide them over the intermediate period. They can be desperate to avoid having their homes repossessed by banks.

"The shark buyer is always quick to spot financial weakness and fear of the future. Evidence of these will be worked on to secure a quick, highly advantageous buy."

Retirement unit funding can be a source of stress for retirees
Business Day - South Africa
Life Rights is today the most commonly used retirement unit funding system in the US , Europe Australia and SA as well as many other countries.

It entails that the money paid to the owner/developer secures the purchaser the right to live in a unit for as long they wish or in perpetuity, for example until the death or departure of both the husband and spouse.

One of the real benefits of Life Rights is that it is not a property deal and, therefore, no transfer duty or VAT is payable, nor are there any bond or registration fees.
Business Day

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