A surge in spending by property owners was likely to follow finance minister Trevor Manuel's announcement of an incentive for owners of inner city buildings to refurbish their properties, Michael Farr, the chief executive of the Cape Town Partnership, said yesterday.
Manuel said on Wednesday that taxpayers refurbishing buildings in major urban centres would receive a 20 percent straight-line depreciation allowance over five years.
Those constructing new buildings would receive a 20 percent write-off in the first year and 5 percent a year for 16 years.
The Cape Town Partnership was established in 1999 between businesses and the Cape Town municipality to create a world-class central business district (CBD) to attract investment.
Between mid-1999 and December last year, investors pumped R3.4 billion into the CBD.
Farr said the partnership welcomed Manuel's announcement of business tax stimuli to support efforts aimed at regenerating the inner cities of South Africa.
"It could be seen as an endorsement by the government of the commitment being shown by local governments throughout South Africa to the renewal and revitalisation of CBDs.
"We are expecting increased investor interest in property development opportunities, as well as what we hope will be a surge in interest from property owners who are now incentivised to refurbish their properties."
The partnership would bring the incentives to the attention of potential investors who had been approached earlier, Farr said.
Publisher: Business Report
Source: Business Report
Facelifts likely for inner city buildings.
Posted On Monday, 03 March 2003 10:01 Published by eProperty News
A surge in spending by property owners was likely to follow finance minister Trevor Manuel's announcement of an incentive for owners of inner city buildings to refurbish their properties.
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