Real Estate Investor Magazine South Africa October 2016 | Page 8

PROPERTY ADVICE LEASE Q Can a residential house be rented to use as an office? I would like to sign a Lease Agreement with an owner to use it as an office, He is saying he can’t as his property doesn’t have business rights?” If the property is zoned for residential use only, there may be certain problems that occur should it be used for a commercial purpose. Generally, and depending on the nature and extent of the business, it will not be a problem to utilize a residential property as offices space, on condition that: MARLON SHEVELEW Attorney 1 You do not employ a large number of staff; 2 You do not expect clients to call on your premises regularly; 3 You do not intend to put up any signage or utilize the property for the purpose of advertising your presence in the area. SELLING Q GRANT HOLTON Estate Agent What are the advantages of using a property manager over simply attempting the selling process myself? A property is not just bricks and mortar. It is a living organism that needs to be maintained and taken care. It frees up valuable time. Your trained property manager will handle the daily management of your tenants and property, so that you can see to more important matters.It ensures that the property is well maintained at all times. This prevents any deterioration that can negatively affect the property’s value. All administration to do with council and regular bills are professionally managed. It provides the homeowner with a sense of security, as there are always eyes and ears on the property. A professional management company is able to react to any burglary, burst geyser, leaking roofs, green pools or any other unexpected event. TAX Q CAROL REYNOLDS Estate Agent I am wanting to buy an apartment for investment purposes and want to know the most tax efficient way to do so. From a tax perspective, it is ideal to invest in the market under R1m. This is because your transfer duty at this end of the market is substantially lower, and as the purchase price increases, so too do the costs. It also means that when an investor chooses to sell his apartment, the capital gains tax shouldn’t be exorbitant because of the price band. When investing, the type of vehicle used to purchase the property impacts upon the tax. Residential properties are exempt from capital gains tax (CGT) for the first R2m gain, provided that these are primary residences. DO YOU HAVE A PROPERTY QUESTION YOU WOULD LIKE ANSWERED BY OUR EXPERTS? If so, post it on ASK THE EXPERTS on www.reimag.co.za or email [email protected] 6 OCTOBER 2016 SA Real Estate Investor Ask The Property Experts click here www.reimag.co.za