Real Estate Investor Magazine South Africa June 2013 | Page 27
VISUAL PROPERTY CLUB
ADVERTORIAL
Benefit by Contributing to Property
Development in SA
The Visual Property Club’s investment package is designed to save you time
as well as tax. Section 13 sex of the Income Tax act was created to incentivise
the private sector, through impressive tax benefits, to invest in South Africa’s
housing needs. The Visual Property Club streamlines adherence to the
Section’s rules and handles the selection of suitable properties, all property
transfer administration and rental income on your behalf.
A
dequate housing in SA, in terms of quality
of living standards and quantity, remains
a critical concern.There is a severe lack of
housing, especially rental accommodation,
for low-to-middle-income families who want
secure, accessible homes in areas close to
key cities.
In 2008,Treasury issued an amendment to
the Income Tax Act, an incentive to motivate
the private sector to assist with providing
more affordable housing opportunities for
the rental market. The underlying rationale
behind these tax provisions is to encourage
the building of more rental accommodation
to supply the ever-growing housing needs in
the country.
Known as Section 13sex of the Income Tax
Act, the tax rebate has a multiple effect, contributing to government’s housing plans while
benefiting property developers, high-end
property investors and ultimately the tenants
who can rent in safe, secure surroundings for
their families.
Developers who qualify under the new 13sex
will be able to write off the building costs incurred of all new and unused residential units,
at an annual rate of 5%, for developments
that were built after 21 October 2008. Purchasers
of buy-to-let residential units are also entitled to the
tax write-off. This tax incentive is aimed at top-end
investors as it is only available if the taxpayer owns
a property portfolio of at least five residential units
within SA, all for renting purposes.
Four years after 13sex came into effect, the impact of proactive property developers is starting to
show. Visual International is a developer who has
designed and built the kind of property that this
tax legislation requires. Stellendale Village is an
award-winning development in the northern suburbs of Cape Town. It is a joint venture agreement
between International Housing Solutions, the South
African Workforce Housing Fund and Visual International. Stellendale Village provides a variety of
housing solutions to low-to-middle income families
and for buy-to-let investors. It is a solid investment
with good rental yields, plus views of Table Mountain and the Helderberg Mountain.
Visual International also decided to take the
SARS-endorsed tax incentive one step further by
creating an attractive and hassle-free investment
package for potential investors. In partnership
with law firm and 13sex tax specialists, Van der
Merwe & Robertson Attorneys, they formed the
Visual Property Club, an opportunity for investors
to maximise their property investments and build
a long-term asset base. “Not only does the
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