Tuesday, 28 June 2011

Pay tax on Property Sales?

When you sell property at a profit that is taxable, you will pay tax on either of two rates:-

1. Capital Gains Tax. The lower rate and consequently first prize. But CGT only applies if the proceeds are "capital" in nature - that is, if you are realising a capital investment; or

2. Income Tax. Where you are held to have been "trading" in the land, the proceeds will be treated as revenue, and taxed as income. Generally a much higher effective rate than CGT, so very much second prize.

So - are you selling a capital asset or are you trading? In very broad terms, if you buy a property intending to hold it as an investment for an extended period of time, you are likely to pay CGT - whereas if you buy it for resale, you are likely to pay income tax.

However that's a very simplified view - the distinction can be a fine one indeed, there is much room for confusion, and every case will be different. Some of the factors likely to be relevant are: -

• How in practical terms have you dealt with the property?

• What is/was your intention in buying/holding/selling it, and has that intention changed?

• How long have you held the property? Note that - contrary to popular perception - this factor isn't in itself decisive, although it could well be relevant in showing what your intention in holding the property was.

A recent Supreme Court of Appeal decision confirms that, although your intention (and any subsequent change in intention) is relevant, the enquiry will go further. The court will also look at whether you are "actually trading, or carrying on a business, at the time of assessment" - a practical test with many pitfalls for the unwary.

The case in question related to the use of "asset realisation" companies, which have in the past been recommended to ensure that sale proceeds are treated as capital rather than as income. The SCA judgment has turned that advice on its head, the Court holding that the assets of realisation companies would be regarded as capital assets "only in special circumstances"; meaning that in most cases, using them may actually do more harm than good.

You may want to transfer your money internationally so contact a money transferring company or bank.
There's likely to be a lot at stake here (assessments of over R1.3m in the case in question!), and how you structure your property purchases and sales could be critical

Tuesday, 21 June 2011

Raptors View R 1,2 million deal awesome

A special deal in Hoedpsruit for R 1,200,000 - awesome contact Annie van den Berg and mention us.  This iwll give you  a 30% discount from the attorneys.

This Wildlife Estate is nestled between the outskirts of Hoedspruit and the foothills of the majestic Drakensberg

Mountains. Approximately 45 minutes drive from the Orpen gate of the Kruger National Park, Phalaborwa and the

Panorama route. One of the first of its kind in the world, Raptor’s View offers secure living in a well-maintained

wildlife estate, which is situated on some of the finest bushveld that South Africa has to offer. Not only is this

Estate a fantastic investment but also offers privacy and exclusivity with all the benefits of living on a wildlife

estate.  Then get a 100% homeloan for this deal.  Full finance available plus costs.!!

Monday, 13 June 2011

So Dubai seems to be settling into its role!

Dubai has witnessed completion of 129 projects since 2009 with 237 out of 450 projects likely to be completed in due course, according to information contained in the government’s bond prospectus posted on the London Stock Exchange.

Quoting Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, the prospectus said that 217 property projects have been cancelled as of May 31.

Currently, there were 455 registered developers and 893 registered brokers in Dubai as of May 31. Under the Tayseer (government-guaranteed funding project), 114 projects have been registered.

The prospectus further states that “following the significant price declines since the fourth quarter of 2008 (in part reflecting the withdrawal of speculative buyers from the market), prices have since stabilised in completed developments.”

According to Dubai Statistics Centre, 1148 buildings worth Dh5.7 billion were completed in the first quarter.

So if you want a mortgage for a property in Dubai it is very available today.

The real estate and business services sector accounted for Dh40.3 billion, or 13.7 per cent, of GDP in 2010. The sector registered declines of 19.8 per cent and 2.6 per cent in 2009 and 2010, respectively, having grown by 30.9 per cent and 1.1 per cent in 2007 and 2008, respectively. Meanwhile, the construction sector accounted for Dh27.5 billion and 9.4 per cent of GDP in 2010. The sector fell 19.5 per cent and 14.7 per cent in 2009 and 2010, respectively.

Friday, 10 June 2011

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Thursday, 9 June 2011

So how to I get a bond and get an interest rate?

The but bottom line for the banks granting a bond to you

you need to provide

1. all the required and correct documentation – if any deviation unless there is an awesome reason they will not proceed.

2. Your credit record needs to be clean else they will

a. Either decline

b. Offer you less

c. Load your interest rate

3. You need to meet each individual banks criteria – which they change regularly or as the market forces move along and we are briefed on these as these changes happen

4. The same criteria is in place whether you go direct to the bank, have a private banker, use an originator, have been with the bank for 20 years or 1 month.

Interest rates

1. There is presently no rate war between the banks as the rates are at their lowest in 30 years

2. Even if there was no one would admit it – but we pick up the trends as we service all banks

3. Rates are affected by:

a. Amount of deposit – the more the better

b. Clients credit rating, externally at the bureaus and internally at the bank – clean = better

c. How long you been employed

d. Type of employment

e. Self employed versus employed

f. Type of loan – vacant land versus home (vacant land carries a penalty at present), holiday home, commercial etc

g. Age and marital status

h. Bank client who deposits salary at the bank or non-client

i. Paying by debit order versus salary deduction

j. Offering surety such as cash based policy

k. Insurance on your life on the bond

l. Whether you pay more than your bond monthly repayment requirement or not – early payer

m. And other factors which the banks have built in their scoring systems

4. All rates are determined by the banks scoring mechanisms and systems which they have spent R millions on to give them an accurate assessment and hence a score

What is in an ACCESS BOND ?

So different banks call it different things but the catch phrase ACCESS BOND means just that - can I access extra money paid into my home loan.

These can be funds paid in, over and above the required monthly installment or could be a prepaid amount over the bond life.

These facilities are only granted at the sole discretion of the lending bank and is not automatic and under the National credit Act, it is clearly stated that the bank must provide customers with the opportunity to prepay the home loan account and to receive the interest benefit of a prepayment from the date the payment is made, however access to prepaid funds is at the discretion of the banks.

So you most likely will have to apply after bond registration not before.

You will need a transactional account from that bank.

make sure you use your facility else the bank will stop it.

No links to credit cards from access bonds.

When the bond becomes older i.e approximately 5 years left this facility will more than likely be cancelled.

So a great read and nice little handbook for all in this tight lending market buy this now - its a great read.

Tuesday, 7 June 2011

Bedfordview takes the lead in looking after their investment - the people

Now for excellent news:

Do you remember that huge public meeting we had that took place at the Bedfordview Town Hall with the MEC?

Well, we have had several follow up meetings with representatives from the MEC’s office. They have now chosen Bedfordview to launch the first “Know your Neighbour” campaign, as well as the “Bedfordview / Patroller campaign.”

So, on Saturday, the 18th of June, from 8am, Bedfordview is going to become a hive of activity across all three sectors!! Each sector will have one road where most of the action takes place. Sector 1 – Van der Linde Road, Sector 2 – Bowling Road, Sector 3 – Amber Road. We are bringing in the dog unit, horse unit, helicopters, and SAPS, METRO, reservists, patrollers and school children will be involved. Officials from government will be arriving in four small buses to come into the community.

The BCPF is calling on everyone in all three sectors to have a street braai / party on Saturday, the 18th of June, to coincide with the campaign. The media will be visiting these parties, so please let us know about what you will be planning. There will be a prize for the vibeiest party. It’s going to be great, and will serve to show that criminals must stay out of our area!


Our first 60 patrollers have been trained! Thank you so much to Hall Real Estate for the venue, as well as to the MEC’s office for the food. This intrepid bunch will receive police clearances, will have their fingerprints taken, and will each be given: a patroller jacket, cap and will have the use of a two way radio.

You’ll see them all out and about on the 18th of June. If you would like to be a patroller, please contact Valerio
You’ll be receiving more news about the 18th of June “Know your Neighbour” campaign shortly. Please diarise – from a marketing perspective this is an incredible way to turn around the perception that only gangsters live in Bedfordview.

Awesome stuff now we can finance you for your home loan and your investment will remain safe.

Pension Supported Housing Loans

ABSA offer a superb product.  Pension Supported Housing Loans
What is a Pension-supported Housing Loan?

A pension-supported Housing Loan is an alternative way to fund any aspect of one’s home. ( can be used to fund the banks LTV lending limit variances – or for registration and transfer fees in relation to new and further advance Home Loan which must be the employee’s normal residence)

It is so named because the pension or provident fund benefit due to an employee can be used as security against the loan without eroding the retirement benefit. The amount borrowed is guaranteed against the fund – it doesn’t come out of it. This means that the employee’s pension or provident fund value is only affected in exceptional circumstances.

Percentage Borrowings

The Fund Managers, Trustees and Employers determine the maximum amount that can be borrowed as well as the percentage and payback terms. The percentage could vary between 50% and 80% of the employee’s withdrawal benefit.


The Absa Pension-supported Housing Loan must be repaid within a maximum term of 30 years or by the time the employee reaches normal retirement age – whichever comes first. i.e. retirement age 65 – present age 45 = 19 years max term of loan

Key Benefits of the PSHL

Absa Pension-supported Housing Loans have a prime-linked interest rate that depends on the potential total value and number of loans in the fund. In this way, members get the benefit of a group-based interest rate, which favours lower income earners in particular.

Absa does not charge initiation fees or monthly service fees in most cases, thus making it affordable and significantly cheaper than another loan.

Credit Life Insurance is available from Absa which covers death, disability and retrenchment to help make sure the loan is paid off in the event of any of these happening. The monthly premium is charged to, and included in, the repayment.

The fund will settle the loan when:

The employee leaves the company and stops deductions

The employee resigns from the funds and withdraws his or her benefit

The employee is disable, retrenched or dies (where no insurance option was in place

The employee retires and there is an outstanding loan balance

The employee defaults on the loan if it is not remedied in time

Emaar commits to housing and economy in Saudi

Emaar Middle East, a subsidiary of global property developer Emaar Properties PJSC, is underscoring its commitment to the housing sector and the overall social and economic prosperity of the Kingdom through its showcase of value-added lifestyle developments at Cityscape Jeddah.

The premier property exhibition is being held at the Jeddah Centre for Forums & Events from June 11 to 13, where Emaar Middle East will highlight the rapid progress achieved on its two master-planned communities, Jeddah Gate and Al Khobar Lakes, and the unique Emaar Residences at the Fairmont Makkah.
To look for mortgages in Saudi Arabia it is worth getting a good financial broker with mortgage management and origination skills.
Transferring funds anywhere in the GCC will come with costs, so find a transfer free service before you start sending your Riyal or dollars and get free no obligation quotes.