FINANCE
The 2023 budget speech from Minister of Finance , Enoch Godongwana , was a sober affair . South Africa ' s underperforming economy , courtesy of load-shedding , corruption and a variety of other factors , set the scene for what is expected to be another tough year for the country .
Emile Grobbelaar , General Manager of Destinata Properties says , ‘ For property investors , the reduction in transfer duties in the value of a property has been decreased , making it more favourable for investors to purchase rental properties . This comes at a time when interest rates are increasing , opening a new market for previous property owners who are selling their homes and seeking rental as an alternative . ‘
Previously , properties under R1 million were not required to pay transfer duties and Minister Godongwana ’ s announcements include an increase to a R1.1 million threshold . The 3 % transfer duties that were required for properties between the bracket of R1 000 001 and R1 375 000 has now been increased to R1 512 500 for property value above
R100 000 of that figure .
Transfer duty trend continues for these properties :
• Properties between the value of R1 375 001 - R1 925 000 ( R11 250 + 6 % of property value above R1 375 000 ) changed to R1 512 501 - R2 117 500 ( R12 375 + 6 % of property value above R1 512 500 )
• Properties of higher value have also been positively affected . The R1 925 001 - R2 475 000 ( R44 250 + 8 % of property value above R1 925 000 ), is now R2 722 500 ( R48 675 + 8 % of property value above R2 117 500 ).
• The 11 % transfer duty bracket has moved from R2 475 001 - R11 000 000 ( R88 250 + 11 % of property value above R2 475 000 ) to R2 722 501 - R12 100 000 ( R97 075 + 11 % of property value above R2 722 500 ).
• The high end also benefits from R11 000 001 and above ( R1 026 000 + 13 % of property value above R11 000 000 ) to R12 100 001 and above ( R1 128 600 + 13 % of property value above R12 100 000 ).
The Minister has also added that the VAT treatment of temporary
71 APRIL / MAY 2023 SA Real Estate Investor Magazine