Property News

We've summarised a few new tidbits regarding property in South Africa. This may be relevant to you if you are a property owner or a prospective buyer.

Property Practitioners Act (PPA)

The PPA, is now in effect. Now you might be thinking about how will it affect you as a homeowner, it does not directly impact you now, but if you would like to buy or sell your property it would be good to note.

When selling, buying, and renting a property the agent needs you to sign a disclosure form for the transaction to be complete. No mandate can be closed without the disclosure form.

The point of the PPA is to protect you the consumer, therefore it is welcomed legislation.

Housing Consumer Protection Bill

This Bill aims to protect housing consumers by effectively regulating the building industry. Contractual provisions will protect new applicants into the industry by addressing warranty fund surplus and other provisions. This is to protect you as the consumer from being misused in the process of building.

Estate Duty

In South Africa, the legislation on Estate Duty is calculated on the value of your entire property portfolio including tangible and intangible property. In terms of inheritance, no tax is payable by the beneficiary. This is due to it not being part of the taxpayer's gross income. The estate itself will be taxed before it is transferred to the beneficiaries. Property refers to all your assets physical and incorporeal. This is great news for anyone inheriting property.

"The luxury market in the Western Cape has seen a huge interest from local and international buyers for many reasons, one being that many of the properties especially in the Constantia Upper and Bishopscourt area are either partially or fully off the grid. This is an asset to buyers as they do not want their lives to be disrupted by loadshedding and prefer a sustainable lifestyle." - Mike Greeff, CEO

Off the grid

A property can be running with it only using the public utility services partially or not at all. Off the grid, homes have become sought-after and may be sold at a higher price when compared to similar properties on the grid. This is not surprising as the electricity supply in South Africa is problematic and buyers want homes that can function when load-shedding hits. High-end homes with existing solar and inverter installations are in demand right now.

For your next property purchase, there is much to consider, happy searching.

Sources: BusinessTech, Moneyweb, BusinessTech