• Who can invest?

    • Although, the minimum age of an occupant of an Apartment in one of Retire 24’s Retirement Villages is 50 years or older, the Purchaser of the Apartment is not limited to a person of 50 years or olderThe Apartments therefore provide an attractive opportunity for investors due to the high rental demand for these types of Apartments and also provides an attractive option for persons to purchase a Apartment for later occupation. 

  • Tax benefits

    • If you buy a property primarily to generate rental income, you may claim all expenses related to the day to day running and maintenance of the property as a tax deduction. Some examples of these tax deductible expenses are interest paid on the bond, levies, rates and taxes, and repairs.

  • Section 13sex

    • Section 13 Sex of the Income Tax Act, 1962 - permits a significant tax benefit on residential property. The following criteria applies:

      • The taxpayer must own at least 5 residential units;

      • All units must be situated in South Africa;

      • Residential units must be new and unused;

      • The units must be used solely for the purpose of a trade - i.e. residential letting.

    • SARS allows a 55% write-off against the purchase price of the units as a deduction against the Purchaser’s taxable income.

  • Release of Equity

    • Should there be a need to release equity from the investment without forgoing the ownership thereof the possibility to alienate the unit on a life right basis may be considered. This is a concept that works well in the retirement market and certainly provides an attractive alternative to an outright alienation of the unit.

    • In summary the occupant of the unit is provided with the right occupy the unit for the remainder of the occupants life in lieu thereof the owner receives a purchase price for the life right. The purchase price for such a life right will usually be 20 to 25% less than the purchase price of the unit if the unit was sold outright basis.

    • When the life right agreement comes to an end, either by way of termination or death of the occupant, the original purchase price must returned to the occupant or the occupant’s estate (as may be applicable). However, the original purchase price that must be returned is subject to certain deductions and only becomes payable once the owner has re-alienated the life right to a new occupant. Any profit on the alienation of the life right to a new occupant shall be to the benefit of the owner.

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