Urban Salt17th Jun 2020
A new residential complex
Live to the heartbeat of Salt River. This new and exciting development is centrally located for easy access to Cape Town CBD, the Southern Suburbs, schools, universities, transport and countless attractions and institutions the Mother City has to offer.
A Total of 148 Modern Apartments from R799 999 (includes VAT and all legal fees).
Great Rental Returns
The Salt River and Woodstock areas are producing significant rental returns on similar apartments.
Average sales in the area
The Salt River and Woodstock areas are experiencing higher sale prices for similar apartments in the current market to what Urban Salt is offering.
- Modern living
- Fibre ready
- Close to universities and schools – Uct, cput, cape town creative academy, afda
- Rent-2-buy finance available
- Close to cbd (3km away)
- Close to cycle track
- Next to myciti bus station – 60m – on either side of development
- Close to train station
- 24/7 security guard
- Biometric access security
- Electrified perimeter fence
The City of Cape Town Urban Development Zone [UDZ] tax incentive is an administered tax incentive from the South African Revenue Service [SARS] that encourages residential and commercial development in specified areas in Cape Town, like the Salt River Area. It offers the property owners a deduction against taxable income over a period of 11 years and could serve as a postponement of tax payable until such time that the unit is sold.
How does this work?
The buyer of a redeveloped residential unit located within the UDZ will be able to claim an income tax allowance. Of the purchase price, 55% is deductible from taxable income. The tax allowance is claimed over 11 years. 20% in the first year and 8% in the succeeding ten years. The tax allowance is regained on the sale of the apartment for an amount exceeding than or equal to cost, which can be put off for as long as the owner owns the property.
On a residential unit with a cost of R2 million, the purchaser is entitled to claim a tax allowance of 55% of the cost of the unit, which equals R1 100 000 over eleven years.The R1 100 000 tax allowance is claimed over 11 years at a rate of 20% in the first year and 8% in the succeeding ten years which results in an annual income tax deduction of R220 000 in the 1st year and R88 000 in the following 10 years.
Please note that the UDZ tax incentive has a number of requirements which must be met in order to qualify for such an allowance. The examples provided above are generic and may not apply in some cases. The developer nor its affiliates provide tax advice of any nature. This is merely for information purposes and should not be regarded as official tax advise. It is recommended to consult with you own tax consultant or SARS themselves before engaging.NOTE: The UDZ benefit is subject to SARS renewing this incentive in March 2020.