Desirable Inner City Development Offers Great Tax Incentives for Buyers
Category Property News
An almost completed luxury urban development in Cape Town's suburb of Zonnebloem is offering investors a wonderful opportunity to own property in the inner city of one of the world's most popular cities - with no transfer duties payable as well as Urban Development Zone tax incentives.
Marketed by DG Properties Castle Rock features luxury studio, one, and two-bedroom apartments - ranging from 41 square metres to 99 square metres in size - all of which feature balconies with spectacular views and which are primely situated near the mountainside, just five blocks from the rejuvenated Cape Town city centre. All units boast state-of-the-art finishes such as fibre connectivity and Smeg kitchen appliances, as well as natural stone surfaces in the kitchen and bathroom. Added to this Castle Rock has ample parking, a concierge desk and 24-hour security.
DG Developments says that investors are assured of excellent returns on a property purchase within Castle Rock. "Globally, history has shown that rejuvenated city centres offer significant capital growth, and Castle Rock is an opportunity not to be missed. Current apartment sales within a 1km radius of Castle Rock are sold at R50 000 per square metre, whereas Castle Rock's per square metre cost comes in at an incredibly low R20 238 per square metre."
Prices start at R1,495,000 and include VAT, with no transfer duties. In addition to this, buyers (including individuals, companies, close corporations, trusts and partners in a partnership) qualify for an Urban Development Zone (UDZ) tax incentive.
DG explains that the UDZ tax allowance does not prevent the taxpayer from deducting any other expenses on the property from their normal taxable income i.e. improvements, levies, rates, bond interest, etc. "A UDZ tax allowance allows a taxpayer to claim 55% of their purchase price. To do so the Municipality must issue a certificate to the purchaser, confirming that the building is located within a UDZ of that Municipality and the developer also has to give a certificate to the purchaser confirming that certain requirements have been met i.e. the erection or improvements commenced after the area was declared a UDZ, and the improvements either covered the whole building or an area of at least 1000sqm."
Castle Rock is nearing completion and occupation is expected for October 2019. "Sales have been robust and we only have a few units left within this desirable development," says DG Properties. "Unsurprising given the UDZ Tax Incentive, the development location is close to top learning institutions and tourist attractions, such as the V&A Waterfront, and easy access to public transport. Young professionals and potential investors can say goodbye to grid-locked traffic and hunting for elusive parking bays and can simply catch an Uber, hop on a bus or take a leisurely stroll into the city centre where the main train and bus station are situated."
"DG is very pleased to be able to offer this premium development to buyers. Whether it is young professionals looking to live, work and play in Cape Town's inner city, or parents looking to invest in student accommodation for their varsity-aged children to study in the city, or those looking to lease the property out for a rental return - Castle Rock is a rock solid investment," concludes DG.
Author: Property360, June 2019