EDITORIAL JOHANN RUPERT VIEW to take advantage of tax benefits ( such as Section 12J ) and alternative investment that meets the needs of investors in challenging investment times . The good news is any if investor invests in the 12J schemes now they then qualify for the full allowance , after that 30 June deadline it will be no more .
SARS is giving investors a window of opportunity until 30 June 2021 to writeoff R2,5 million in taxable income ( or R5 million in taxable income if you are a company ) in the 2022 tax year on Flyt ’ s 12J partnership fund . You will either get a full tax refund or avoid paying tax in future provided you have paid tax on the income and have yet to earn the income .
Flyt who are featured on Real Estate Investor cover story this month have already sold out on a bunch of 12J investment opportunities in their fund on several residential projects already . Good news is they have three new development projects available for investors . The popularity of the fund can largely be attributed to the 100 % loan facility that has been made available to investors and taxpayers who do not have the finance upfront , according to Ryan Flowers fund Manager of Flyt Property . A 5 % deposit secured the investment and a loan was made available for the balance to qualifying taxpayers while waiting for their SARS refund . This loan is repaid partly by the investor ’ s tax refund from SARS and the balance settled either in cash or with a replacement home loan .
Zane de Decker , CEO of Flyt Property Investment says that for anyone interested in property investment , there really is no better time to take advantage of this remarkable incentive .
Investors have the unique opportunity to allow SARS to put down the deposit on their property investment for them ( up to 45 % depending on the investor ’ s tax bracket ).
Property investment is always coming up in unique ways and alternative property investing alongside the developer together with the Section 12J currently present some of the best deals available in the current residential market . The current market is struggling to bring more than 5 % average returns , given the strains of the rental market . Here are some webinars on responsible alternative investments that you must also attend .
Remember the window will shut as soon as a good deal is recognised .
Stay safe and successful investing
NEALE PETERSEN FOUNDER
TOM PETERS
“ If a window of opportunity appears , don ’ t pull down the shade ”
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SA Real Estate Investor Magazine MAY 2021 3