Property expenses not allowed

Property Expenses not allowed. According to Alvin van Staden, a director at The Consulting Services Hub, maintenance and repairs should be noted as specific costs, and these should not be confused with improvement costs. The latter is a capital expense that would be included in the base cost of the property, to effectively reduce the …

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Rental income Tax Deductions

Rental income Tax Deductions. This article first appeared in the 2nd quarter 2018 edition of Personal Finance magazine. All income from property investments, including rental income, must be declared to the South African Revenue Service (SARS) and is subject to income tax. In preparation for tax season, you can begin gathering all the supporting documents …

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Financing an investment property

Financing an investment property. Mainstream banks often only consider a portion of the proposed rental for first-time property investors. For those who believe in the merits of property investment and wish to grow their portfolio, perhaps the most critical hurdle to overcome will be sourcing suitable property finance. Many of the mainstream retail banks are …

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Security of property rights

Security of property rights. South Africa has a history of denying property rights, especially to the poor and vulnerable. The natural relationship – intricately related to dignity and freedom – that develops between people and their possessions was forcefully shattered by a racist government with a socialist ideological agenda. The dawning of constitutional democracy promised …

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Lawyers more affordable than Realtors

Lawyers savaging realtors. There is Huge outrage over the high commission rates by some property agencies. Commission-discounting real estate agencies, mainly owned by lawyers, are savaging the traditional agencies over the latter’s high commission rates, ranging from 7% and sometimes up to 10%, depending on the complexity of the deal. As the fight gets nasty, …

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What is Property Value investing?

What is value investing? It is an investment style that places an emphasis on Stocks and REITs with lower-than-average price to book ratios and higher dividend yields. Investopedia defines Value Investing as an investment strategy where stocks are selected that trade for less than their intrinsic values, so they actively seek stocks they believe the …

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The Upside-Down Value of REITs

The Upside-Down Value of REITs. Contrary to popular investor assumptions, Top REIT performers tend to have:– Lower dividend yields– Lower leverage– Lower capitalisation rates Of the primary impacting factors that impact value, it is Mean Reversion that generates the highest returns in the REIT environment. The commonly held beliefs of which factors contribute to generating …

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Receiving a fine from your complex

Receiving a fine from your complex or housing estate. Home Owners Associations (HOAs) often implement a number of rules in an attempt to regulate everything from speed limits to noise levels. This means that it may not come as a surprise to find a white envelope in your postbox with the signature of your Body …

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