2013 - Maboneng Precinct

INVESTING IN MABONENG
10 11
RELATIONSHIPS WITH BANKS
AMOUNT
Propertuity Management has developed
strong relationships with the major banks in
South Africa who have consistently funded
acquisitions throughout developments in
the Precinct. Depending on the financial
position of a purchaser, bonds of up to
100% have been granted.
The tax incentive amounts to 30% of the
purchase price of the property over a 5
year period. For example, on a R500,000
apartment, the tax incentive would be
R150,000 over a 5 year period which
equals R30,000 per year off set against
taxable income.
FOREIGN INVESTMENT
Foreigners can own immovable property in
South Africa without restriction. However,
all foreign funds remitted to the country
must be declared and documented to
ensure repatriation. The property must
also be endorsed ‘non-resident’, as a
condition for repatriation.
Arts on Main - selling price per SQM
The current UDZ Incentive was set to
expire in 2014 but it has been extended
to 2020.
Arts on Main 2009
Arts on Main 2010
Arts on Main interior
Non-resident investors have to pay
Capital Gains Tax when they later sell their
properties. The purchaser of the property
is required to deduct a prescribed %age
from the proceeds of the sale and remit
it directly to the South African Revenue
Service before paying the balance to the
seller.
Main Street Life - selling price per unit
URBAN DEVELOPMENT ZONE INCENTIVE
Main Street Life - 2010
Main Street Life - 2011
Main Street Life - Interior
The Maboneng Precinct falls within the
Urban Development Zone.
The UDZ Tax Incentive is a tax rebate
that reduces the taxable income of the
taxpayer.
It is an accelerated depreciation
allowance applicable to investors who
erect new buildings or refurbish existing
buildings within the demarcated Urban
Development Zone with the purposes of
trade. The aim of the UDZ tax incentive
is to revitalize these urban areas and
business districts, thereby stimulating
economic development. In 2005 the UDZ
legislation was amended to extend the
allowance to sectional title owners and
investors that purchase buildings from
developers.
The City and Suburban area that the
Maboneng Precinct falls in is within the
designated UDZ zone and therefore the
incentive applies to all of the Maboneng
developments but is only applicable
on property bought directly from the
developer.
The tax incentive reduces the taxable
Revolution House - selling price per unit
Average growth - 60%
Average annual growth 20%
During the worst property market performance in SA history.
income of a taxpayer. The incentive is
not limited to the current year’s taxable
income of the taxpayer and can be
carried forward as an accumulated tax
loss for use to shield taxable income in
future years.
Revolution House - 2010
Revolution House - 2011
Revolution House - Interior
Fox Street Studios - 2012
Fox Street Studios - 2013
Fox Street Studios - Interior
2013