The world is changing fast and to keep up you need local knowledge with global context.
*Content provided by 12Cape
- One of South Africa’s most attractive tax incentives comes to an end in just over a week’s time.
- Taxpayers have one final chance to benefit from it. Swap pre-tax income for a store of value. Investments in Section 12J funds are 100% deductible from the taxable income of the investor. It is a simple process.
- Secure your deduction now, pay later: 12Cape has an attractive Deferred Payment Option in which you pay 10% of your total investment before the 30th of June 2021, 30% on the 28th of February 2022, and 60% on the 28th of February 2023. No interest is charged on the deferred payments.
- 12Cape Limited is designed to optimise your return without taking excessive risk. 12Cape targets an ungeared post-tax net return of 15-20% p.a. for investors with high taxable income – be they individuals, companies or trusts. Fund value underpinned by irreplaceable real estate with an active open market value.
- Remote Work is a game changer for Cape Town, and it is here to stay. Cape Town has already been voted a global favourite destination for remote work. The huge European workforce has few better options than swapping a cold winter for a sunny summer in the same time zone. European remote workers have already become repeat visitors at our Aparthotels, and will do so for years to come!
- Aparthotels is the fastest growing sub sector in hospitality accommodation in the world, and perfect for remote working and family holidays. The 12Cape owned Latitude Aparthotels have an average occupancy of 75% since opening in November 2019, and despite COVID. Occupancy is currently c. 80% even though it is winter and the third wave.
- Prime Property has proven itself over decades as a store of value. The Atlantic seaboard in Cape Town is no exception with inflation beating returns over long periods. 12Cape does not take development risk and purchases completed assets at discounted bulk pricing, and with very limited debt – a maximum of 15%.
- Diversification: With income generated in hard currency from foreign visitors, the income stream is uncorrelated to SA Inc, and becomes more attractive when the rand weakens. With active foreign interest in assets along the Atlantic Seaboard, the capital values also have a hard currency underpin. In this interview with Alec Hogg, Jaap du Toit (our Chairman) elaborates on the asset class.
- Compounding and Exit: 12Cape is designed to benefit from the global trends described above, and to compound over long periods. There is, however, an exit mechanism for investors who want to do so after five years. The modularity of the portfolio is designed to facilitate this.
- Modularity: The 12Cape fund is modular in nature comprising building blocks of 1, 2 and 3 bedroom sectional title units with individual title deeds. This means that we can curate our portfolio with the help of the actively trading residential market.
- “Semigration” Trends: Looking to move to the Western Cape in future? Property prices keep rising and the capital outlay and time required to manage an investment property is onerous. An investment in 12Cape is not only tax deductible, but gives you a foot in the market too.
- People: Managers matter. The 12Cape investment team has decades of experience in institutional investment, real estate and private equity. They are shareholders in 12Cape, along with many repeat investors who are also professional investors.
Make the most of this final opportunity – Head to this link to learn more.
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Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.