Luxury in the centre of the city
Apartments and long-term leases still available at Cape Town’s exclusive Taj Hotel, writes Michelle Swart
Those who invest in UDZ properties such as the Taj Residences are able to benefit from unique tax rebates, says Seeff Atlantic Seaboard and City Bowl MD Ian Slot. The residences are for sale directly from the developer, one of the qualifying criteria for the rebates. Under section 13 quad of the Income Tax Act, the incentive promotes investment in urban renewal and buyers can offset up to 55% in the form of an asset depreciation allowance against the purchase price over 11 years.
Provided the unit is let out or used for business reasons, investors can claim 20% of the 55% allowance in the first year and thereafter 8% annually for the next 10 years, says Seeff agent Jason Paans, who is marketing these apartments. For example, an investor buying a studio unit at R2,995m can benefit from a tax rebate of nearly R1,648m over the 11-year period.
The studio, one- and two-bedroom units are priced between R2,995m and R6,35m and are luxuriously furnished, serviced and include a living and dining area, fully equipped kitchenette and balconies. Owners can use hotel facilities including a business centre, gym and spa and the three restaurants as well as personalised services such as transfers. Potential investors with business interests in and around Cape Town will find this an appealing option given the hotel’s central location.
Cape Town is the country’s best inner-city renewal success story, says Slot. The redevelopment of the CBD has led to real estate here becoming sought after with significant capital appreciation potential. Inner city renewal is a global trend and SA is still in the early phases of this.
Pownall says that the benefit of owning one of the Taj suiteswould be the services, facilities and conveniences of an international 5-star luxury hotel which is unique in Cape Town. “Aside from a number of other benefits, we offer owners excellent security, maintenance and management of their investments providing complete peace of mind. Ten free room nights in any Taj Hotel is included in purchase price through Worldwide Taj Benefits within the Taj Hotels, Resorts and Palaces,” he says.
Levies include satellite television, electricity and water.
Long-term leases from R35 000/month. Purchase of Taj Residences from R2,995m to R6,5m
Sales: Jason Paans, Seeff Properties, 082 744 4388 Leasing: Teresa Davidge, Taj Cape Town, 021 819 2004