The Lower End Market As A Cash Flow Investment
Category Advice
Investing in rental property is considered a good move to make since it opens up new vistas of possibilities. The case is especially true when it comes to the lower end niche market of South Africa. The introduction of new rules and legislations has created new channels for investors to make money, and has also made property investment a convenient means of multiplying one's return on assets, specially considering the high yields.
Thanks to the tax relief initiative of the government, more and more investors are showing interest in the rental property market. After all, property is a long term investment opportunity which offers diversified benefits. New tax laws have been formulated to target the low end niches of the city. This is a measure for attracting investors to the CBD and to make sure that they hold on to any opportunities that may come their way. This is a wonderful initiative to help boost the country’s economy as well as fund government treasuries.
The annual returns on housing have been impressive in the last couple of years, prompting the country’s decisive bodies to formulate new methods of tapping into their property resources. The rental property business is an easy lure for investors. The finance minister has come up with new tax reforms that simplify investment procedures.
Property analysts and investors have approved of the new tax initiatives. They believe that these new measures will help reduce degradation of inner city properties. Homeowners who are looking to renovate their properties can now be entitled to a 20% cost reduction from their income each year for a period of 5 years. Owners who are planning to build for commercial or residential purposes are eligible for a 20% reduction in the first year, and a cost cut or write-off of 5% each year for 16 years.
Property analysts advise investors to be comfortable with their financing strategies. Check with the sales comparisons before investing. Determine what the going rates are for similar properties to ensure you are getting the best deal.
Author: IMAGINE Properties