Estate Living Magazine Connection - Issue 43 July 2019 | Page 7

P R O P E R T Y
&
I N V E S T M E N T
Just four hours from Johannesburg, or a quick shuttle from Kruger
Mpumalanga International Airport, Mdluli Safari Lodge, located
inside the border of the Kruger National Park, offers luxury tented
accommodation, and escorted (or self-drive) safaris in the park. So
– finances aside – this is the perfect ‘investment’ in me-time, staff
incentives, conferencing or client hospitality.
Best of both worlds
Mdluli Safari Lodge’s Section 12J property investment programme
makes plenty of sense as its structure allows for a 100% tax write-off,
along with investing in a luxury property in South Africa’s premier
national park.
N
Let’s say you have R1 million to invest. You can choose between a bed
nights only package, which will give you 53 bed nights per person
each year, for the 10 years of your investment (valued at R3,700 in
2019 with an 8% escalation), or you can choose to take fewer bed
nights (25 per person, each year, for the 10 years of the investment)
and also receive an annual dividend. Of course, this is over and
above the tax benefit. If you invest R1 million, you can deduct that
amount from your taxable income, which effectively reduces your
tax bill by R450,000 if you are paying at the 45% marginal rate.
While investing is usually a purely financial decision, buying bed
nights in the Kruger is a definite sweetener. There are two different
options, each coming in at a number of price points. You can choose
to invest in a bed nights only package, or to invest in a package that
combines bed nights with an annual dividend for 10 years – the first
offering of its kind in South Africa.