Property News - February 2016
Welcome to the PPI Property Investment Newsletter, the aim of which is to keep you up to date and informed as to the most recent property trends and news.
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Estate duty is charged on the dutiable value of the estate in terms of the Estate Duty Act. The general rule is that if the taxpayer is ordinarily resident in South Africa at the time of death, all of his/her assets (including deemed property), wherever they are situated, will be included in the gross value of his/her estate for the determination of duty payable thereon. The current estate duty rate is 20% of the dutiable value of the estate. Foreigners/non-residents also pay estate duty on their South African property. To minimise the effects of estate duty you need to understand the calculation thereof.
As we enter a new era of rising interest rates, greater regulation and potentially lower returns, it will be interesting to see which cities’ prime residential markets will outperform.
Development at Bridge City to the north of Durban is gathering momentum with the precinct not only emerging as a key investment location but also as a strategic regional precinct and transport hub. Brian Ive, a Development Executive at Tongaat Hulett Developments, said that a number of sales had been concluded recently and that construction of two of these developments was due to begin during the first quarter of 2016.
London, UK – Sydney is set to see the strongest prime residential price growth in 2016, rising by 10% year-on-year according to Knight Frank’s Prime Cities Forecast. The report which assesses the performance of prime city markets in 2016 also predicts that three cities are expected to see a decline in prime property prices; Hong Kong (-5%), Singapore (-3.3%) and Paris (-3%) with Hong Kong overtaking Singapore as the weakest-performing luxury residential market in 2016.
“It has long been said that “when the United States sneezes the rest of the world catches cold”. China, is not quite the US yet, but these days as the world’s 2nd largest economy it is in the leagueof countries with “very significant global influence”. In addition, China has become South Africa’s major trading partner.”