 |
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| The
total impact on home loan repayments, since the start
of rate hikes in 2006, is now more than significant. |
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| There
is simply nothing like The Chicago Spire anywhere in
the world. This is your chance to own a piece of iconic
history. |
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You
should also familiarise
yourself with some common
commercial property terms. |
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| Investments
valued at a R1.2billion have been pumped into Durban's
inner city Urban Development Zone (UDZ). Get in on the
action. |
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INVESTMENT HOT SPOT
City of Durban - A HOT Urban Zone
Development (UDZ) area |
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Investors
looking to capitalise on a national
Government Urban Development Zone
(UDZ) tax incentive have been given
a break, thanks to Finance Minister,
Trevor Manuel. |
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| The
scheme, originally set to expire
in March 2009, has been extended
by five years to enable the
private sector to play an increasingly
significant role in assisting
with the development of South
Africa’s inner cities.
The announcement formed part
of the minister’s 2008
Budget Speech in Parliament. |
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| Many
cities – and most notably Durban
– around the country have registered
a growing number of applications by
investors and developers during the
latter part of the incentive scheme’s
operating period. |
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| Investments
valued at a massive R1billion
have been pumped into Durban's
inner city Urban Development
Zone (UDZ), impeding decay and
contributing to the restoration
of the city's high-profile business
and residential status. |
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| The
UDZ incentive scheme has proved most
successful and beneficial to Durban.
The city has received more than 350
enquiries from prospective investors
since the inception of the scheme
and forthcoming developments qualifying
for the depreciation allowance will
bring the total value to some R1.2billion.
This figure is likely to be significantly
exceeded now that the scheme has been
extended for a further five years. |
| |
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The
demarcated areas have been selected
by municipalities and approved by
their councils before getting the
approval of the Minister. The eThekwini
Urban Development Zone consists of
the Durban CBD, including parts of
Walter Gilbert Road.
The areas are
Bell Road, Shepstone Road, Bay Terrace,
Victoria Embankment, Alexandra, Brook
Streets, West Street, Berea Road,
Carters Ave, Canongate Road, Warwick
Ave, Centenary Road, Carlisle Road,
First Ave, Stamford Hill Road, Croydon
Road, Walter Gilbert Road, Cobham
Road, Old Fort Road, NMR Ave until
Walter Gilbert Rd, Somtseu Ave, Stanger
Street and Argyle Road.
|
These
demarcated zones have been designed
to stimulate investment in Durban’s
inner city area in terms of the Urban
Renewal Tax Incentive [This incentive
falls under section 13 quat of the
Income Tax Act (Act No. 58 of 1962).
For the refurbishment of existing
buildings, investors are eligible
to receive a 20% tax deduction in
the first year of earning income,
plus an annual depreciation of 20%
over a four-year period.
For new developments, this incentive
offers a tax deduction of 20% in the
first year, plus an annual depreciation
of 5% for the next 16 years. This
ultimately leads to a substantial
subsidy that should stimulate the
inner city’s property sector.
This incentive is extremely novel
in that it allows the accelerated
depreciation to be set-off against
any other income (including personal
income tax) and not only income from
that particular building (as long
as the building is receiving an income
or is used for the person’s
trade).
|
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The
incentive also supports government’s
housing policy, as it encourages private
investment in affordable rental housing
in the inner city.
It complements other
initiatives such as the formation of business-improvement
districts, which allows the private sector
to provide supplementary urban management
in the form of additional security, cleaning
and marketing services.
| -------------------------------------------------------------------------------------------------------- |
Any
investor is eligible,
if the following three
conditions are met: |
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| -------------------------------------------------------------------------------------------------------- |
1.
A building in the UDZ must
be refurbished, improved,
erected.
2. This building must be solely
used for the investor's trade.
3. The investor must receive
a certificate of occupancy
for the building from the
relevant
3. municipality.
|
| -------------------------------------------------------------------------------------------------------- |
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Many
investors are set to benefit
from the incentive scheme, including
leading financial institutions,
such as ABSA, Standard Bank
and Old Mutual Properties.
Impressive building upgrades
are being undertaken at a number
of sites on West Street, the
city's central arterial, including
the re-development of retail
space in both the Colonial Building
and the JBS Building.
| In
addition, developers are
benefiting from the strategic
release of council-owned
land, inclusive of Kingsmead
Office Park, Hoy Park
and areas close to Durban's
International Convention
Centre (ICC), opening
the door to the emergence
of a new business hub
on the northeast fringes
of the CBD. |
Inner-city
regeneration has been greatly
strengthened by ABSA's decision
to retain its KwaZulu-Natal
Regional Office in the city
centre. The financial institution
has committed an estimated R82
million to upgrading its 291
Smith Street premises. |
| Critical
to the city's regeneration
is the transformation
of the depressed Warwick
Junction area. At the
heart of the city's Warwick
Junction Precinct Plan
is a R400million investment
for constructing Warwick
Mall, a private development,
complimented by an eThekwini
Municipality contribution
of a comprehensive taxi
rank. |
The
project is to be developed by
Warwick Mall (Pty) Ltd, a Durban-based
black empowerment company specialising
in property.
Warwick Mall, which will straddle
the railway lines at Berea Station,
is the catalyst for the entire
precinct plan and introduces
a vast new retail element to
the Warwick Junction inter-modal
transport node.
The 22000m² mall is a bold
and aesthetically pleasing use
of space and will be conveniently
located between the railway
lines below and a 500-bay taxi
rank above.
|
 |
| Obed
Mlaba, eThekwini Mayor,
commented, "The time
is right for investors
to buy buildings in Albert
Park and Warwick Triangle.
I would like to see more
buildings being sold to
African people who, in
spite of constituting
70% of the population,
were sidelined from the
economy." |
|
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A
number of black-owned development
companies are successfully taking
on the ambitious residential
property upgrades of a number
of the inner city's most notorious
buildings in the Warwick Triangle
area, including Hampson Court
and semi-detached housing in
Bentley Road. Such re-development
is creating new liveable space
for, especially, students and
family units.
Meanwhile, another private small-scale
investor has transformed an
over-crowded slum close to the
city's ICC into middle-market
bed-and-breakfast accommodation
aimed at the conference market
generated by the adjacent ICC. |
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| The
Durban metropolitan area
has been highlighted as
a key strategic growth
node for Pam Golding Properties
(PGP), which has launched
a new flagship corporate
office at 187 Montpelier
Road in upper Morningside. |
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|
Says
Dr Andrew Golding, CE of Pam
Golding Properties group, "Located
in a region of economic significance,
we see Durban as an area whose
property market has considerable
unrealised potential. As a result,
as a group we are significantly
growing our presence here, with
the new Durban branch office
to incorporate the areas of
Durban central city, beachfront,
the Point and Waterfront, Berea,
Morningside, Overport, Glenwood
and Umbilo. This new office
will provide a springboard for
additional satellite offices
to be launched in these areas,
which we anticipate will see
us significantly increase our
market penetration".
|
| -------------------------------------------------------------------------------------------------------- |
UDZ
Guidelines for
Investors: URBAN
RENEWAL TAX INCENTIVE
|  |
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| -------------------------------------------------------------------------------------------------------- |
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ALL
YOU NEED TO KNOW ABOUT DURBAN |
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Short
History of Durban:
| • |
Portuguese
explorer,
Vasco da Gama,
visited the
site of Durban
in 1497 and
named it Rio
de Natal. |
| • |
British
colonisation
began in 1824.
|
| • |
The
city, first
called Port
Natal by the
British, was
renamed Durban
in 1835 after
Sir Benjamin
D'Urban, then
governor of
the Cape Colony.
|
| • |
In
1842, the
Boers besieged
British troops
in the Old
Fort (now
a museum |
| • |
Gold
was discovered
in Johannesburg
in the 1880s,
and Durban
became the
chief commercial
city of Natal
and a major
port after
1887, when
the bay was
dredged. |
|
Durban’s
Business Profile:
Durban’s
Super 7 is
the seven
key reasons
Durban is
attractive
to business
and leisure
visitors.
The acronym,
‘ALL
HITS’
has been coined
for easy recall.
|
| 1. |
Award
winning municipality.
|
| 2. |
Lifestyle
of business
and pleasure
together.
|
| 3. |
Large
Human Resources
base. |
| 4. |
Highest
growth rates.
|
| 5. |
Infrastructure
leader. |
| 6. |
Tourism
crown. |
| 7. |
Substantial,
successful,
growing business
base already
in place across
the primary,
secondary
and tertiary
sectors. |
|
The
Durban Coast:
| • |
Being
a coastal
city, Durban
is constantly
affected by
the warm sea
current flowing
down its coastline.
|
| • |
The
coast to the
north and
south of Durban
enjoys beautiful
beaches and
warm water
with high
humidity.
|
| • |
One
of the most
powerful currents
in the world
is the Agulhas
Current, which
travels southward
down the Mozambique
and KwaZulu-Natal
shoreline.
|
| • |
Surfing
is one of
the primary
activities
on the many
beaches, where
you will find
Surf Lifesavers
with several
signs demarcating
safe swimming
areas. |
| • |
Angling
and boating
are also very
popular activities. |
| • |
Durban
is a thriving
industrial
centre supporting
a major seaport,
and is also
an all year-round
holiday destination.
|
| • |
Industries
include shipbuilding
and ship repairing,
sugar refining,
petroleum
refining,
fishing, automobile
assembly,
and the manufacture
of food products,
paint, chemicals,
fertilizers,
soap, footwear
and textiles. |
|
Fact
File:
Established:
1835
Estimated
Population:
3,346,799 (2004)
Ethnic Groups:
Black 68.3%, Indian/Asians
19.9%, White 8.98%,
Coloured 2.82%,
Literacy:
84.6%
Government:
Republic
Places of
interest:
| • |
Durban
Waterfront
- host to
many events
including
the annual
and prestigious
Mr Price Pro
Surfing Championship
|
| • |
Durban
City Hall
- completed
in 1910 |
| • |
The
old station,
which currently
houses Tourist
Junction -
built in 1892;
|
| • |
Elephant
House at 745
Ridge Road,
which is the
oldest house
in Durban
- built in
1850. |
|
Geography:
Being situated on
the south-eastern
seaboard of South
Africa in the province
of KwaZulu-Natal,
Durban is adjacent
to the Indian Ocean
in the east and
is bordered by the
Drakensberg Mountains
in the west, and
to the south lies
the Atlantic Ocean.
Languages:
| Zulu |
63.0%
|
| English |
29.9%
|
| Xhosa
|
3.43%
|
| Afrikaans
|
1.44% |
| Sesotho |
0.7% |
| Ndebele
|
0.2% |
| Sepedi
|
0.1% |
| Non-official
languages
|
0.93% |
|
Religion:
| Christian |
68%
|
| Muslim
|
2%
|
| Hindu
|
1.5%
(60% of Indians)
|
Animist
and
indigenous
beliefs |
28.5%
|
|
Imports:
•
Machinery
•
Foodstuffs and equipment
•
Chemicals
•
Petroleum products
•
Scientific instruments
Exports:
•
Gold
•
Diamonds
•
Platinum, other
metals and minerals
•
Machinery and equipment
International
Trading:
•
USA
•
UK
•
Germany
•
Japan
•
Italy
Industries:
•
Mining
(World's largest
producer of platinum,
gold and chromium)
•
Automobile assembly
•
Metalworking
•
Machinery
•
Textile
•
Iron and steel
•
Chemicals
•
Fertilizer
•
Foodstuffs |
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Our
unique showday mapping facility is now
available to assist you in preparation
for your weekend showhouse quest. |
|
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Pam
Golding Properties Office Network:
Contact a Pam Golding Properties Agent in your
area.
...Click
here |
|
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| Pam
Golding Properties Head Office: Monterey, 12-14 Klaassens
Road, Bishopscourt, Cape Town, 7708. www.pamgolding.co.za |
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