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There are no short-cuts to create wealth. The only solutions are taking initiative, grabbing opportunities and working hard.
Last month, we identified one opportunity to create wealth, namely to leverage your property investments.
This month we will discover how the Receiver of Revenue can help you create wealth.
According to Section 11 (a) of the Income Tax Act, 1962 (Act 58 of 1962), expenditure or losses incurred in the production of income, may be deducted from your taxable income - provided that such a expenditure or loss are not of a capital nature. Renting out property can also be seen as such a venture.
The good news is that the following expenses may be deducted if you rent out property: - Interest on your mortgage.
- Property tax.
- Water and lights expenses.
- Wear and tear.
- Furniture.
- Curtains and artwork.
The transaction should however be constructed correctly and
we advise that you consult a certified financial planner or tax
consultant.
Is 1% Rent Per Month Not To
High? In last month's newsletter, I stated that a property that you can rent out for 1% of it's value per month is a good investment. We had a query from one of our subscribers from Bloemfontein, Prof. Jan Smit, if 1% rent per month isn't too high.
My answer is that 1% is the ideal rent you should
you aspire to get. Property rented out at .5% per month may still be a sound investment, bearing in mind that your cash flow is not compromised.
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Congratulations To Jacques Jansen van Rensburg! Congratulations to Jacques, the latest winner of our REFER A FRIEND competition. Remember that, with a larger subscriber base, we can offer more benefits to our subscribers.
Plan Your Wealth
Refer A Friend Competition Send this newsletter to a friend and stand a chance to win R100! Terms and conditions apply.
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Enquiries in JulyMy family and I are going on a
holiday to the USA in July. Enquiries will unfortunately have to stand over till August.
Sorry for the inconvenience!
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