Property News - October 2012
Welcome to our Property Investment Newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends and news.
Please be advised that we have recently aquired new office premises and are now based in Umhlanga Ridge. Our new contact details are as follows:
Portfolio Property Investments
20 Corporate Park
11 Sinembe Crescent
La Lucia Ridge
Tel: ++27 31 566 4605
Fax: ++27 31 566 4510
Value added tax (VAT) vendors who purchase fixed property from a non-vendor are to receive a greater input tax deduction (VAT deduction) due to recent changes to the Value-Added Tax Act 89 of 1991, effective from 10 January 2012.
The continued Eurozone crisis; a slowing growth from China, India and Brazil and an American economy unable to maintain momentum are issues that fill the news daily.
Since its low in Q2 2009 the Prime Global Cities Index – which tracks the performance of the top 5% of mainstream housing markets – has been largely subdued, recording average quarterly growth of 0.8%. The buoyant Asian markets kept the index in positive territory up until Q1 2012 when cooling measures and in particular restrictions on second-home ownership, led to a fall of 0.4% in the first quarter of 2012.
Landlords in South Africa could well be forgiven for believing that the law gives their tenants all the rights. Everything it seems is on the tenant’s side and while landlords do have some control, in most instances they are going to have to pay a fortune in legal costs to exercise those rights.
On 4 July 2012 the Tax Administration Act 28 of 2011 became law and it is expected to come into operation before the end of the year. The Act requires the Minister of Finance to appoint a Tax Ombud for a renewable term of three years.