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VITAL TO SAVE FOR A RAINY DAY IF THE pandemic has taught us anything, it is the importance of having emergency savings – especially if you own your own home. Putting money into a contingency fund each month will provide homeowners with a financial cushion to avert disaster, says Adrian Goslett, chief executive of Re/Max of Southern Africa, Something could happen to the house itself, such as a leaking roof or rising damp, or it could be a financial emergency
that affects you as the homeowner, such as job loss or a cut in salary. “The question you need to ask yourself is, ‘If something like this happens, would I still be in a position to afford the home?’” Goslett describes three basic steps required for homeowners create a contingency fund: Set incremental savings goals: As a bare minimum, you should aim to save approximately one month’s salary although, in an ideal world, three to six months’
saved income is preferable. A six-month financial cushion should see you through most crises. Select a vehicle: When setting up a long-term savings vehicle, it is important to select an interest-bearing account that is separate from your regular banking, so that you are not tempted to dip into it for non-emergencies. Automate the savings: Avoid creating the option of not contributing towards your savings fund by setting up a debit order or automatic payment each month.
Entrepreneurs who let their homes or a room to paying guests have to declare their rental income to Sars. PICTURE: PxHere
SARS IS WATCHING YOUR SPARE ROOM
P It is important to have an emergency savings fund to see you through crises. PICTURE: STEVE BUISSINNE/PIXABAY
Be considerate of the neighbours
ROPERTY owners who host paying guests but do not declare their income to Sars will need to do so, says Sohail Govender, finance director of Just Property. While Airbnb is well regulated and requires taxrelated declarations annually before any payments are made to the hosts, the informal sector is unregulated, and so some of those who let their homes or rooms directly to tenants may not be aware that
they need to track such income and declare it to Sars. “I believe there are still entrepreneurs in the informal sector who are not aware of this and do not declare this income to Sars.” If Sars discovers that a landlord or host has not declared their rental income during the relevant years of assessment, Govender warns, penalties of up to 200% and interest can be charged. “Even harsher steps may
be taken based on the value of the undeclared income where taxpayers are unable to pay their tax at the time it is assessed by Sars.” He adds, however, that both ad hoc renters and landlords can claim expenditure incurred in the production of income against that income. “The general deduction formula allows for deducting expenditure incurred in deriving the income to arrive at one’s taxable income.”
I T ’ S W A R M T O D AY I N S U N N Y K Z N
More visitors and home deliveries will occur in residential areas as more people work from home. PICTURE: RODNAE PRODUCTIONS/PEXELS
WITH many people working from home for the foreseeable future, a lot more business activity is taking place in residential areas. The need to stay home means more entertainment is happening at home, including more visitors and deliveries. However, says Gerhard van der Linde, managing director for Seeff Pretoria East, laws still apply, and everyone has the right to enjoy their property without discomfort. You should not interfere with your neighbour’s rights, or you could face legal consequences. South Africa has a comprehensive set of laws which deal with property and neighbourly issues, along with local municipal by-laws and regulations concerning acceptable noise levels etc. The basic rules, he notes, include: • Reasonable noise, such as that from gardening and building work, is acceptable between 6am and 6pm and party noise to about 10pm on Fridays and Saturdays. • Dogs may not bark incessantly. Van der Linde says part of the attraction of living in a sectional title complex or estate that is well managed is that they often have strict rules with regard to noise, parking and so on.
KZN’s mild winters are attracting semigrants to its coastal regions. PICTURE: FITNISH MEDIA/UNSPLASH WITH many parts around the country experiencing freezing winter temperatures, the KwaZuluNatal coastline comes into its own with its year-round, mild climate. And this is fuelling the semigration trend to the region, says Carol Reynolds, Pam Golding Properties area principal for Durban Coastal. “We are fortunate to live in a very desirable pocket of the country where there is ongoing
demand. The North Durban coastal belt offers exceptional schools, good infrastructure, office parks, shopping malls and excellent hospitals, and all of this in a sought-after strip with warm, clean beaches and some of the best surf in the country.” Despite the lockdown, she says the residential property market in this perennially sought-after region has shown resilience, and agents are continuing to experience
activity across all price bands. Most notably, family homes priced under R5million are selling quickly while developments are attracting a significant amount of investor interest. “We have noticed a positive influx of Johannesburg buyers shopping in our sunny climes, while local property developments in particular, have attracted investment interest from out-of-towners.”
