Real Estate Investor Magazine South Africa Dec/January 2020 | Page 18

Welcome to Newtown, the cultural precinct in the Heart of the City and be amazed Newtown is a melting pot of cultural expressions. From cuisine to music and art, the precinct offers a cultural explosion that transports visitors across time and space. The Urban Development Zone (UDZ) tax incentive has transformed the precinct into a hive of activity, with many commercial enterprises setting up shop here. These include the world-renowned Mary Fitzgerald Square where exciting public performances and gatherings take place. Even Tata Nelson Mandela once spoke at the Square. Among spectacular draw cards of the square are Diwali Festival, the Chinese New Year, the SA fashion Week, the Joburg Arts Alive and multi- cultural jazz sessions which occur under the shadow of the iconic Nelson Mandela Bridge. The UDZ tax incentive has unlocked developments which have reinforced Newtown as a prime cultural destination in the City. These include the Turbine Square which houses the headquarters of Anglo-Gold Ashanti mining house and the Dynamic Forum Conference Centre that has lit up space for young vibrant business aspirants, wedding and other celebrations in the heart of the City. Other property developments are the Zurich building offices, the Newtown Junction shopping facilities and a hotel. All these developments have enhanced Newtown’s cultural and social characteristics in support of earlier landmarks such as the SAB World of Beer, the Museum Africa. Sci-Bono and the Market Theatre. The construction of some 6 000 affordable accommodation units at the confluence of Carr Street and Nelson Mandela Bridge and within close proximity to Wits University eastern campus has meant that the area bustles with activity at all times of the day. Restore, Renovate and Recover There are significant financial benefits for investors as part of the City’s UDZ tax incentive scheme. Property size does not matter because investors are eligible for major tax deductions if investments are within the UDZ boundaries. To qualify, an investor has to restore, refurbish or add onto an income- generating property within the UDZ, or demolish old buildings and build new structures in their place, or purchase new or refurbished buildings or units. An investor will qualify for a 100% tax deduction over several years, depending on whether they have refurbished existing structures or constructed new buildings. The incentive enables property owners to increase the value of their properties and improve their earning capacity within the UDZ. Corporate or small investors who own buildings that have degenerated can now restore and renovate them, and recover the money spent. No matter what other sources you may get your income from, one can deduct from their taxable amounts any money spent on building or refurbishing within the UDZ. 16 DECEMBER/JANUARY 2020 SA Real Estate Investor Magazine