Estate Living Magazine New Beginnings - Issue 37 January 2019 | Page 21

P R O P E R T Y
&
I N V E S T M E N T
The premise is that SARS foregoes otherwise payable income tax
now, in return for future income tax payments from the investee
company, capital gains from the VCC on exit, and dividends tax or
capital gains tax from the investor when funds are paid out.
THE ZIMBALI CAPITAL OPTIONS
Some Section 12J VCC entities offer low-quality investments, but
the allure of Zimbali Capital’s offering is undeniable. There are two
options on offer.
Boulevard PAD
One option is to invest exclusively in a suite of your choice at
Boulevard PAD (executive-style, lock-up-and-go studio apartments
within Zimbali Lakes Resort) for as little as R1 million. The investment
is ring-fenced to the capital appreciation on the unit, and the investor
receives hotel investment income from the pooling of suites.
Zimbali Boulevard
Boulevard PAD is expected to have a strong rental market pull,
according to IFA H&R, offering residents the prestige of a Zimbali
address, and access to the world-class amenities on offer within this
secure gated estate.
U
‘If someone invests R1 million in Zimbali Capital, they will receive a
tax credit of up to R450,000 at the end of the tax year. What this means
is that an investor will receive a return on 100% of their investment
but only have exposure of 55% of their original investment amount,’
explains Zimbali marketing manager Erik Steele.
Or you could invest in a portfolio of development, hospitality and
student accommodation assets across South Africa. This investment
will be ring-fenced to a portfolio of properties that are forecast to be
in excess of 18% IRR (internal rate of return) after tax.