Work like you don’t need the money, dance like no one is watching, and love like you’ve never been hurt
With the interest rates going up, I am sure you are now really considering selling your unit in that complex? But you have consistently paid your levies in time and probably also paid a special levy (some incompetent trustees call for these every now and again…) so may I suggest the following:
As you may know, you are not entitled to all those levies that you have paid (PMR 45)! So, what do you do? I suggest that you explain to your prospective purchasers that these amounts will in future be used for the benefit of all owners and attempt to include the accrued amount in your selling price. For example, if your body corporate has R 200K surplus in your complex (say 50 units), then it would have meant that you are “entitled to” R 4K, so add the R 4K in your selling price! Easy!
Do not hesitate to contact me (see details below) if you have questions! Good luck in your selling of your unit!
p/s Let me know if you want me to attend your Annual General Meetings as your proxy! In our days you need someone whom you can trust and also understands Sectional Titles!
Private Property reported on 17 June that You (the owner) Have to Share Your Rent with SARS!
If you own one or more rental properties, the SA Revenue Service (SARS) requires you to draw up financial statements showing your expenses and profits in relation to these properties – and to pay tax on your profits. Many private landlords don’t know this and believe they can just pocket whatever rent they receive without reference to SARS.
On the other hand, there are certain expenses incurred in the letting of property that can be deducted from the gross rental to determine the actual profit – and reduce the amount of tax payable. These expenses typically include the interest paid on the bond, municipal rates, the cost of any repairs and of maintaining the property, the premiums paid to insure the property and any sectional title or estate levies paid.
Let me know if you want me to administer your property of all the costs you are incurring. I will keep track of the following for you: Bond Accounting/Consulting Fees
Bad / doubtful debts
Capital allowance depreciation
Commission / Consulting Fees Paid
Rates and Taxes
Insurance (business related)
Interest / Finance charges
Rental Repair Maintenance
Royalties and licence fees
Salaries and wages
For a fee of only R100* pm or R1000* pa (payable in advance), I will keep track of all these expenses for you. I will then forward you the file for your SARS submission. Let me know if you need more information...
* - discount applicable to those who have more than one unit. Let me know if you need more details...
Warm property regards,
Watch this space...