Invest with flexibility
Whether you’re solely a buy-to-let investor or buy-to-live investor or a little bit of both, with The Barracks’ unique offering, you’re able to enjoy good rental returns and have the flexibility to also have your apartment for your own use.
What does this mean?
- Owner can short term let through appointed operator (TPF Hospitality).
- Owner also has the flexibility to occupy the apartment throughout the year as per arrangement with operator.
- The Barracks offers investors full rental management packages, with a net yield estimated at 8%* for short-term letting. (*Individual unit yields applicable)
- TPF services include:
- Marketing of units
- Check-in & out
- Laundry & housekeeping
- Interior decorating
- Apartment maintenance
- Rate management & distribution
- Apartment inventory & standard control
- Monthly reporting
- Whether you opt to short-term let or not, TPF will also provide all owners management services of the building and the rental operation:
- Concierge service
- Common area cleaning & minor maintenance
- Building supervision in collaboration with the managing agent
UDZ Tax Incentive
Due to the fact that The Barracks has been approved in terms of the City of Cape Town’s Urban Development Zone, Investing in The Barracks will allow investor buyers wishing to rent out the unit, to claim an allowance of 55% of the purchase price over 11 years (*subject to terms and conditions).
Conditions:
- The property must be in an Urban Development Zone.
- The building must be new or improved.
- The purchaser must use the property for purpose of trade i.e. let the units to a third party for the procurement of a rental income stream.
- The property must be purchased directly from the developer (not applicable to re-sales of the unit).
The allowance is not limited to the taxpayer’s current year’s taxable income. This means should the taxpayer not be able to use the full allowance in any year, that unused portion of the allowance can be carried forward to the following tax year together with that year’s allowance. The allowance does not prevent the taxpayer from deducting any other expenses on the property from his/her normal taxable income (i.e. improvements, levies, rates, maintenance cost, interest, etc.).
The above is for information purposes and purchasers are welcome to visit the SARS website here and are advised to consult with their tax practitioner in order to determine whether they qualify.
Example calculated on a R2million unit:
| UDZ Allowance | NEW BUILDING | |
|---|---|---|
| Cost of unit | 2 000 000,00 | Excl vat |
| Years | 11,00 | |
| Allowance | 55% | Cost |
| Allowance | 1 100 000,00 | |
| Years | Allowance against taxable income | |
| 1 | 220 000,00 | |
| 2 | 88 000,00 | |
| 3 | 88 000,00 | |
| 4 | 88 000,00 | |
| 5 | 88 000,00 | |
| 6 | 88 000,00 | |
| 7 | 88 000,00 | |
| 8 | 88 000,00 | |
| 9 | 88 000,00 | |
| 10 | 88 000,00 | |
| 11 | 88 000,00 | |
| 1 100 000,00 | ||