Comments on: Weird and worrying rate increase proposal

By: Phillip

Phillip — Mon, 18 Jul 2011 12:14:34 +0000

In reply to David Kirk. Agreed, I have 40 tenants in the R1500 - R2500 bracket, the rate increase alone will add approx 10% to each of their rents, which comes on top of the 20% electricity increase and standard inflation. Add to that the fact that investors now need to actually generate a return on the rent and can not just rent the property while waiting for capital gains. Hurting those who really cant afford to be hurt.

By: David Kirk

David Kirk — Mon, 18 Jul 2011 10:26:51 +0000

In reply to Phillip. Sad thing is, this hurts everyone, but maybe more those who pay rent than those who receive rent.

By: Phillip

Phillip — Sun, 17 Jul 2011 21:50:07 +0000

How much would they really even earn with this counterproductive idea? If you can deduct property rates for rental properties from your taxable income, then that just cuts down the state again. As with most ideas though up at one of the ANC`s open bar conferences, the idea seems to something that can mentioned in an election speech to give the masses the idea that the rich are being punished, while in fact the tenants will be the ones who suffer most.

Great article btw.

By: David Kirk

David Kirk — Sun, 17 Jul 2011 17:35:42 +0000

In reply to Carolyn. There isn't really a new requirement - the same way capital gain is different for rented vs owner-occupied properties. But as I mentioned, there will be non-compliance and there will be wasteful expenditure on attempts at enforcement.

By: Carolyn

Carolyn — Sun, 17 Jul 2011 14:31:15 +0000

Any indication on how they are going to administer this?