Property development and investment firm Flyt Property Investment have posted record sales across three developments on offer via their Section 12J Select and Partnership Funds.
The tax-efficient structure fuelled the rapid uptake of investment into their hospitality offering with investors flocking to take advantage of National Treasury’s generous Section 12J tax incentive before the 30th of June 2021 deadline.
This announcement is hot on the heels of another impressive sales effort earlier in the year where all the hospitality units at Eaton Square, WINK Aparthotels and Quivertree were sold out.
During his annual Budget Speech this past February, Tito Mboweni announced that the Section 12J incentive would not be extended beyond the June 2021 deadline, prompting the surge of 12J structured products and property specialists who had established qualifying property options via the 12J incentive, provided the property industry with a much-needed boost at the time.
In anticipation of significant renewed interest in the Section 12J incentive leading up to the deadline, the Flyt team prepared for the onslaught.
Fund manager Ryan Flowers says that their goal was to firstly ensure that their product offering was on point and to then engage with as many South African investors as possible.
“It was evident from the outset that investors clearly did not want to miss out on the final opportunity to use their SARS tax refund towards a property investment and thanks to our well-structured investment options and bridging finance facilities, a property investment was made more accessible.”
Flowers went on to mention that the group was well-positioned ahead of the deadline with three prime developments located in sought-after locations in Cape Town.
Of the 180 apartments and studios on offer under the groups Hospitality Fund at One Thibault, Cape Town’s iconic multi-use building, 101 were sold in a matter of weeks. “Its convenient location, incredible views, smart design aesthetic and excellent price point aside, the 12J incentive presented an unmissable investment and tax-saving opportunity for property investors – which we will not see again for some time,” says Flowers.
Many industry experts think that 12J or a revised version thereof should continue – not only was it a remarkable tax-saving vehicle, but the many jobs it facilitated, helped not only to boost the economy but also aided many a small business to survive tough economic conditions. “It will be interesting to see what National Treasury decides on similar investment incentives such as 12J – removing it completely would be a mistake in my opinion, when it has so much to offer in terms of investment, growth and job creation in South Africa” he concludes.