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In your thirst for knowledge, be sure not to drown in all the information. Anthony J. D'Angelo. We have sifted through and found these property articles newsworthy.

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Navigating an economy hit by downgrades and a deadly virus - what the experts have to say
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A swift State of Disaster declaration on 17 March paved the way for less bureaucracy to allow measures to ensure South Africa avoids the fate of mainland China, central Europe and the United States - said to be the new epi-centre of this global pandemic.

We've carved a near week into the 21-day lockdown the country is under, with daily updates from the President's core Covid-19 task force ministers - (including the departments of Health, Police, Trade, Transport and Social Development to mention a few) - screening and testing measures have been ramped up - along with policies and acts adjusted to ensure the Coronavirus brunt is limited.

South Africa's economy is being pummelled but a number of debt relief measures and funds are positively in the pipeline.

Right now the big question on any business or South African individual's mind is, "What is available and how can I apply for it?"

SEE: 10 lockdown FAQs answered

Here's a list of the most important measures available for South Africans to apply for:

Businesses and individuals are advised to apply for the assistance provided only if absolutely necessary and no other private insurance safety measures are in place. Added to this, tax compliance and correct business registration requirements must be in place before applications can be submitted. Know of a measure that needs to be included? Email editor@property24.com.

Debt Relief Measures

Covid-19 Temporary Relief Scheme

This allows employers to apply for the COVID-19 Temporary Relief Benefit - to stem the financial distress of due to the pandemic for up to 3 months.

The benefit is de- linked from the Unemployment Insurance Fund's normal benefits and will only pay for the cost of salary for the Employees during the temporary closure of the business operations.

Benefits will pay a replacement income equal to minimum wage of the sector concerned and be capped to a maximum amount of R17 712, 00 per month, per Employee. It is subject to the income replacement rate sliding scale (38 % -60 %) as provided for in the Unemployment Insurance Fund Act 63 of 2001.

Businesses can apply for the Covid-19 TERS Benefit from the UIF by sending an email to covid19ters@labour.gov.za where you will be prompted with further instructions.

Small Business Development Minister Khumbudzo Ntshavheni on Tuesday, confirmed the relief measures were underway, saying reference numbers for fund allocations are expected to begin on 1 April - but also acknowledging the risk of multiple applications clogging the system.

SEE: Navigating an economy hit by downgrades and a deadly virus - what the experts have to say

Business Growth and Resilience Facility for essential services

Industrial Development Corporation (IDC) together with the Department of Trade, Industry and Competition has set aside R3 billion to aid medical and hygiene product suppliers with capital to ensure they are able to meet the high demand during this Covid-19 pandemic. Essential services businesses will need to obtain approval from the department for approval to trade here: www.bizportal.gov.za

SMME Relief Finance Scheme

Soft-loan funding for existing businesses in distress due to the COVID-19 pandemic. The relief will be for a period of 6 months, from 01 April 2020. Click here for the application process via www.smmesa.gov.za

Spaza shop support scheme created

Launched by the Minister of small business development, Khumbudzo Ntshavheni on Tuesday - it will provide seed capital to shops owners to allowed them to continue to provide essential good. They must have a permit to trade from a local municipality as one of the core requirements. SALGA is making allowances to supply this during the lockdown period so shop owners can qualify for the aid.

South African Future Trust (SAFT)

Created by the Oppenheimers, it allows SMMEs to apply for an interest free loan - aiding them to keep their employees during this time of cash flow crunch. Terms can be reached to repay the loan, once the crisis is over.

Eligibility includes annual turnover of below R25m, trading for at least 2 years, sound business as on 29 February and demonstrated adverse impact due to Covid-19. Click here for more details for application process details.

Tourism relief fund due to Covid-19 travel restrictions

The Department of Tourism has made an additional R200 million available to assist the industry as it is impacted by the new travel restrictions. The fund will be administered to benefit SMMEs in all the 9 provinces and various tourism sub-sectors. The department says, "Necessarily and rightly there will be a degree of bias towards rural areas, townships, women, young people and people with disabilities."

Measures are being put in place to administer the fund, with Tourism Services Call Centre being set up. Click here for the latest details.

READ: Property24 waivers fees for agents as SA braces for impact of Covid-19 lockdown

Airbnb to pay 25% of cancellation fees due to Covid-19

Home-sharing platform Airbnb has set aside $250m (about R451bn at R18.04/$) to help cover the cost of COVID-19 cancellations.

When a guest cancels an accommodation reservation due to a COVID-19 related circumstance, with a check-in between March 14 and May 31, Airbnb will pay hosts 25% of what they would normally receive through your cancellation policy.

"This applies retroactively to all COVID-19 related cancellations during this period. This cost will be covered entirely by Airbnb. These payments will begin to be issued in April. Guests with reservations booked on or before March 14 will still be able to cancel and receive a standard refund or travel credit equivalent for 100% of what they paid. Visit airbnb.com/250Msupport for more details.

Payment Holidays

What the major banks are offering

- Standard Bank

From 1 April 2020, Standard Bank will support small and medium-sized enterprises (SMEs) with a payment holiday for 90 days (01 April 2020 until 30 June 2020) - restructuring payments for the repayment to come into effect after the 90-period. Visit the Standard Bank Covid-19 site.

Small businesses, students and those needing help with home loans can email debtcarecentre@standardbank.co.za or call 0860 123 000.

- Absa

From the 1 April 2020, ABSA's corporate and business clients will be offered solutions based on their unique requirements and operations. For retail clients, the ABSA relief programme incorporates a three-month payment holiday and allows customers to reduce their monthly repayments. See more details on the Absa Covid-19 site.

Absa bond home-owners who would like to apply for relief should mail bondrs@absa.co.za.

- FNB

From 1 April to 30 June 2020 aimed at providing relief to individual and business FNB customers whose financial stability has been impacted by Covid-19 pandemic. Visit the FNB COVID-19 site.

- Nedbank

No specific relief policy for businesses or customer are currently in place. Customers are encouraged to contact the bank directly if they are in financial distress due to Covid-19. Call 086 055 5111.

Customers who need payment relief should call the dedicated debt relief centre on 0860 110 702 and home-owners who need help can also email HLCollections@Nedbank.co.za or MoratoriumRequest@Nedbank.co.za

Sefa-Debt Restructuring Facility offers six-month pay holiday

Small businesses funded by the Small Enterprise Finance Agency (Sefa) will be given a payment holiday for the next six months, with certain conditions applicable. Click here for the application process via www.smmesa.gov.za

Tax breaks and competition rules relaxed

Employment Tax Incentive (ETI) raised to cover all ages - and paid monthly

Government will extend its existing Employment Tax Incentive (ETI) programme, aimed at young workers, to all ages. Companies will be able to claim R1 500 per month for every worker who earns less than R6 500 and is younger than 30 years for the first year of employment and R1 000 in the second year of employment from the SA Revenue Service. Also, companies will get R500 for all workers up to the age of 65 who earn less than R6 500 a month. For young workers who have already been covered by the ETI payments for two years, employers will get R500 for each of them.

SARS will also pay back the PAYE reimbursements every month, instead of twice a year.

Companies allowed to keep 20% of monthly PAYE

Small- to medium-sized businesses - with an annual turnover of less than ZAR50 million - will be able to defer payment of 20% of their employees' tax (PAYE) liabilities due and payable for the period 1 April 2020 to 31 July 2020, without penalties and interest. The relief will be available to tax-compliant businesses.

The 20% deferral will be payable in equal instalments over six months from 1 August 2020, i.e. the first instalment must be paid by 7 September 2020.

Joon Chong, Partner at Webber Wentzel says, "In summary - there is no relief measures for VAT late payments unfortunately. There is VAT and customs duty concessions for importation of essential goods, if the importer obtains an import permit from ITAC.

"There is only relief for PAYE and provisional tax payments for small and medium sized businesses, i.e. with annual turnover of less than R50 million. Small- and medium-sized employers can defer 20% of PAYE for 1 April 2020 to 31 July 2020, over six months with no penalties and interest.

"First repayment is by 7 September 2020."

Deferral of provisional tax payments

"Small- and medium-sized companies can defer provisional tax payments, 15% of estimated tax liability for the first provisional tax payment, 50% for the second, the remainder by the third provisional top up date. All of this is being finalised," states Chong.

"One possibility is that they could be eligible for similar relief if their annual turnover is less than ZAR5 million and less than 10% of their income is from interest, dividends, foreign dividends, rental and remuneration."

Customs duty and VAT concessions on importation of "essential goods"

SARS issued a media statement on 27 March 2020 (updated on 29 March 2020) on certain customs duty and VAT concessions on the importation of "essential goods" as defined in the regulations issued under the Disaster Management Act.

Importers will be able to claim a full rebate of customs duty and VAT exemption on the importation of certain goods. A list of the qualifying goods is available on the International Trade Administration Commission ITAC website. However, in order to claim customs duty relief under item 412.11, the importer will need to obtain an import certificate (permit) from ITAC.

VAT late payment penalties in question

There has been no relief outlined for late VAT payments by vendors. There will thus be 10% late payment penalties and interest imposed on any VAT payments made after their due dates, regardless of the vendors' VAT turnover. The 10% late payment penalties and 20% underestimation penalties are percentage-based penalties in the Tax Agreement act. The percentage-based penalties may be remitted in exceptional circumstances, if the taxpayer was "incapable of complying with the relevant obligation" in a tax statute.

Given that BGR 52 has referred to the Covid-19 pandemic as circumstances beyond the control of taxpayers, it is likely that the pandemic would similarly constitute exceptional circumstances for any requests for remission of percentage-based penalties and interest in the TAA.

Nevertheless, any requests for remission of penalties and interest will be on a case-by-case basis. A SARS committee considering the request is likely to be guided by the principles of whether objectively (1) the taxpayer was incapable of complying with its tax payment obligations; and (2) the documents provided to support this allegation are accurate and reliable.

Competition rules for retail sector relaxed

The Covid-19 block exemption for the retail property sector has since been issued by the Minister of Trade, Industry and Competition Ebrahim Patel opening up a "safe harbour" for firms in the sector to co-ordinate particular activities to ensure the survival of tenants of retail properties during the Covid-19 national disaster, says Webber Wentzel legal experts.

Retail tenants and retail property landlords are free to reach agreements between and among one another in relation to payment holidays and/or rental discounts for tenants.

The agreements and practices may only be implemented for the sole purpose of responding to the Covid-19 national disaster. Furthermore, the exemption does not apply to any communication or agreements relating to pricing (unless specifically authorised by the Department).

SEE: Covid-19 relief for retail landlords and tenants as competition laws eased

Every little bit counts

From Virgin Active announcing they would automatically freeze memberships, to South Africans being encouraged to pay their domestic workers, even if not permanently employed - every effort helps to stem the financial backlash.

South Africa has also joined the Solidarity Fund - which is looking for monetary and non-monetary donations, encouraging citizens to come together as a nation, to look after one another.

Individuals cannot apply for assistance from the fund, the South African government will distribute donations through various channels to achieve the fund's goals of: prevention, detection, care, and support as the country deals with the Covid-19 pandemic. Click here to donate.

"As with any crisis, timing is always critical and many of these programmes are understandably still being operationalized," says Kumaran Padayachee, Spartan SME Finance CEO.

Spartan will continue to collate its relief resource registry that any SME can tap into to assess if they can apply for relief, how to go about applying.

As a debt funder, Padayachee says Spartan knows the pain many SMEs are experiencing right now, which is why the registry also digs into analysis of each relief measure listed.

As with the actual funds, the Covid-19 Relief Registry is a work in progress.

"Relief initiatives typically go through the phases of announcement, followed by development, and then they put the operations in motion - this includes processing applications - which is at the heart of what small business owners want to know right now," says Padayachee.

Click here to see more details on the Spartan Relief Registry.

Financial Fitness - Is this the right time to buy property?
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FRIDAY, 20 MARCH 2020 11:27

Written by eProperty News

With the South African Reserve Bank's announcement of interest rates cut of 100 basis points and earlier transfer duty exemption for properties below R1 million by the Minister of Finance, local regulations have made it attractive for first-time home buyers to enter the market.

Amidst the uncertainty, the outbreak of the novel Coronavirus has an unexpected upswing for South Africa's property and real estate market. According to experts, South Africa is also likely to see a buyer's market opening up during this period, with supply exceeding demand.

As a result, individuals looking to buy may be able to purchase property at prices lower than the average. During the viral outbreak, the US has seen a positive impact on the real estate market with Forbes reporting a 224% increase in reapplications for home financing and first-time home buyers taking advantage of the lower mortgages.

It remains critical for consumers to educate themselves about buying property, especially in these uncertain economic times. Below are some of the questions they should think of.

What is the importance of owning or buying property?

Owning your own home, particularly for the first time, is an incredible feeling - a mixture of excitement, accomplishment and pride. Property ownership gives the sense of security, stability and peace of mind.

Property generally appreciates over time increasing the value of your personal wealth.

Should you wish to make any alterations like adding a room (like at the birth of your child), you can easily do so as the owner.

Having own property gives you stability that guarantees your kids acceptance to attend local schools.

Is this the right time to be buying property? Why do you say so?

The increase in the transfer duty threshold provides a very positive incentive, not only for first-time home buyers, but all those people purchasing homes as ultimately, they pay less transfer fees compared to last year.

What does the announcement above mean to home buyers or property investors?

Consumers across the board, even for consumers wanting to purchase properties valued at more than R1 million, will realise some saving. For example, a consumer who purchases a house valued at R2.5 million would have a saving of R17 000 in transfer fees. The estate duty change significantly reduces the financial burden on those looking to enter the market. In addition, favourable lending conditions and an oversupply of new developments make this a good time to buy property.

What tips can you give someone who is buying property for the first time?

  • Determine value and location and the house you can afford.
  • Save for a down payment, the higher it is the less monthly premium you pay.
  • Understand all the upfront costs and save for them to avoid bottlenecks.
  • Drive through the neighbourhood of the house you want to buy on various days at different times to check out traffic, noise and activity levels.

What does this announcement mean to prospective buyers who are employed by government?

Government employees qualify for housing allowance of R1200 per month. So, employees wanting to own property and utilise these benefits can contact the housing access support services via the Government Employees Housing Scheme (GEHS) on www.Gehs.gov.za to understand their individual situations.

What are the advantages or disadvantages of owning a property?

Below are the advantages and disadvantages that homeowners need to weigh in before making the commitment:

Advantages

There is pride in home ownership - you customise your home according to your own taste.

Buying a house is a sound financial investment, values generally appreciate.

No duty paid for properties below the threshold of R1 million.

Monthly re-payments are stable as compared to renting.

Disadvantages

There are substantial upfront costs such as deposit, transfer duty, transferring attorney costs, moving costs, etc., which can cause stress if one is not financially prepared for this.

If you are not financially stable, buying a house can lead to financial ruin as this monthly financial commitment can be up to 20 years and your house can be repossessed if you fail to honour the premiums.

It is not just the bond repayments, ongoing costs include electricity, water, municipal rates & taxes, levies (if in a gated community), maintenance gardening, paining, etc.

Selling your house can range between 3 months to a year depending on the market.

There are many costs associated with your dream home. Doing your financial homework upfront and analysis is key to having the peace of mind that you can cope with all the costs and enjoy your new home and the making of many happy memories.

'Rentvestor' A New Breed Of Property Buyer
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Why Consider Serviced Apartment Investments?
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Serviced apartments are a relatively recent phenomenon. They are fully furnished flats that have similar amenities to hotel rooms and can be used for either short-term or longer-term stays

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How Junk Status Will Affect The Property Market
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News broke last week that The Fitch ratings agency could affirm SA's rand-denominated credit rating one level above junk at BBB-, a move that no doubt makes us question what this means for the property development and real estate sectors.

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The Ins And Outs Of A Commercial Lease Deposit
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A deposit is a predetermined sum of money which a tenant is required to pay the landlord before taking occupation of any commercial premises.

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Zero-Rated VAT For A Commercial Property Transactions
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The area of zero-rated VAT for a commercial property transaction can be confusing and must be properly understood if one wishes to avoid confusion and delays.

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Renting Versus Owning Business Premises
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Every growing business throughout its life cycle is confronted with the important decision to continue leasing or own the premises in which it operates.

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