Section 13sex is an important tool for all property investors. Even if your properties are cash flow positive and profitable through your rental income, you can still reduce your tax liability substantially through a key tax incentive. In certain situations, you can even eliminate income tax legally whilst remaining cash flow positive!
Toggle between 10% or 20% deposit.
This is the total purchase price of all 5 properties.
The deposit is calculated on 10% of the total portfolio purchase price based on 90% bond financing.
Note: You can get 100% bond financing when using IGrow Wealth Homeloans.
This is the total monthly contribution/Surplus towards your property portfolio at Year 1.
Year 10: - R5,194 p/m
Year 20: + R30,226 p/m
Year 30: + R93,659 p/m
The total Sec 13sex Tax Deduction is based on 55% of the total portfolio purchase price.
Total portfolio price: R5,717,900
Tax deduction (55%): R3,144,845
The Rental Assist is an IGrow exclusive discounted amount built into the package that provides a monthly rental cash injection above the projected rental income for a period of 1-4 years.
This is the total purchase price of all 5 properties.
The deposit is calculated on 10% of the total portfolio purchase price based on 80% bond financing.
Note: You can get 100% bond financing when using IGrow Wealth Homeloans.
This is the total monthly contribution/Surplus towards your property portfolio at Year 1.
Year 10: + R359 p/m
Year 20: + R35,780 p/m
Year 30: + R99,213 p/m
The total Sec 13sex Tax Deduction is based on 55% of the total portfolio purchase price.
Total portfolio price: R5,717,900
Tax deduction (55%): R3,144,845
The Rental Assist is an IGrow exclusive discounted amount built into the package that provides a monthly rental cash injection above the projected rental income for a period of 1-4 years.
Year | Unit Trust Value | Property Portfolio Equity | Difference | % Difference |
|---|---|---|---|---|
5 | R3,268,705 | R3,012,618 | R221,244 | 7.6% |
10 | R4,802,801 | R6,484,392 | R2,382,948 | 45% |
15 | R7,056,890 | R11,438,433 | R5,412,067 | 61% |
20 | R8,854,709 | R18,534,994 | R9,680,285 | 70.6% |
25 | R15,235,296 | R28,747,814 | R15,737,342 | 75.3% |
30 | R22,385,648 | R43,526,113 | R24,409,460
| 77.9% |
| Property Portfolio Market Value | = R8,019,651 |
| Equity In Property Portfolio | = R3,012,618 |
vs
| Unit Trusts/Share Portfolio | = R2,791,374 |
| Investment Return Difference | = R221,244 |
| Property Portfolio Market Value | = R11,247,975 |
| Equity In Property Portfolio | = R6,484,392 |
vs
| Unit Trusts/Share Portfolio | = R4,101,444 |
| Investment Return Difference | = R2,382,948 |
| Property Portfolio Market Value | = R22,126,469 |
| Equity In Property Portfolio | = R18,534,994 |
vs
| Unit Trusts/Share Portfolio | = R8,854,709 |
| Investment Return Difference | = R9,680,285 |
| Property Portfolio Market Value | = R43,526,113 |
| Equity In Property Portfolio | = R43,526,113 |
vs
| Unit Trusts/Share Portfolio | = R19,116,653 |
| Investment Return Difference | = R24,409,460 |
Year | Market Value | Equity | Rental Income | Contribution/Surplus | Tax Deduction |
|---|---|---|---|---|---|
5 | R8,019,651 | R3,012,618 | R48,668 | – R16,514 | R157,242 |
10 | R11,247,975 | R6,484,392 | R65,129 | – R5,194 | R786,211 |
15 | R15,775,866 | R11,438,433 | R87,158 | + R9,954 | R1,572,423 |
20 | R22,126,469 | R18,534,994 | R116,637 | + R30,226 | R2,358,634 |
25 | R31,033,517 | R28,747,814 | R156,086 | + R57,355 | R3,144,845 |
30 | R43,526,113 | R43,526,113 | R208,879 | + R93,659
| R3,144,845 |
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