The Section 13 Sex bulk deal property investment is a smart move for IGrow investors. You need to know how the key advantages in a savings situation can add up. This is the thinking behind Green 13: which combines IGrow’s Signature Discount, Bulk Deals discounts, the Section 13 Sex Tax Allowance and the potential of a green bond interest rate discount. This creates incredible bulk property investment savings.
Why property investing is a worthwhile idea
Recent South African articles highlight the importance of rental demand, location, and the long-term potential of building a property portfolio. (Source)
Residential rentals have a track record of success. “We have clear data to justify investment – high levels of occupancies, high rental recoveries, and the ability to be a defensive asset,” says Gregory Coe, Head: FSC Fund at Old Mutual Alternative Investments, Impact Investing. (Source)
Choosing your property’s location is important too. However, the key factor is long-term rental demand. View IGrow’s properties for sale. Investing in property remains a lucrative and profitable endeavour.
Three levers consolidated in one investment strategy
The first lever
We call this IGrow’s Signature Discount. For example, all IGrow Developments come with zero bond and trasnfer fees, as well as rental assist payments and discounted rental management speciasl. Furthermore, when IGrow investors buy our qualifying bulk deal, additional perks include free company and trust setup, free accounting assistance for the first year. With the Green 13 deals, these perks can accumulate to around R600,000 in potential savings.
The second lever
The Section 13sex tax allowance is an incredible taxable income deduction available each year for 20 years. According to SARS, qualifying taxpayers are able to claim an allowance on certain new and unused residential units used for rental trade. A taxpayer must own at least five qualifying residential units (new, unused rentals) in South Africa. Your primary residence is not a qualifying investment property under this law.
The third lever
The final lever is the green bond benefit. Specific EDGE-certified developments will qualify for a green bond interest rate discount amounting to 0.25%, which will last for the full lifetime of the bond.
To find out more about EDGE-certification and the green bond, view our handy blog post.
How Green 13 Bulk Deal Savings Stacking Actually Works
| Investment lever | Potential benefit | How it works |
| IGrow Signature Discount | Bulk-deal savings | Company and trust setup is free. Year-1 accounting is free, plus zero bond and transfer benefits, Rental Assist and other incentives |
| Section 13 Sex Tax Allowance | Tax deduction potential | Available to qualifying investors meeting the five-property prerequisite and other SARS requirements |
| Green bond | Potential interest saving | Approximately 0.25% may be available on qualifying EDGE-certified properties, subject to bank approval |
A practical Green 13 Stacking example
Consider this example of a Green 13 portfolio: two Greenpark Lifestyle Estate units, two Madison Square units and one Erand Creek Estate unit, with a combined property value of R4.82 million.
R4,820,000 Property Portfolio Value*
Gross Rental Yield: 12.4%
Annualised Return on Investment: 19.9%
Monthly shortfall in the early years (reduces annually): R7,412*
Where it adds up after 30 years:
Projected Total Portfolio Value: R68,500,000*
Projected Monthly Income: from R245,000*
Estimated Section 13sex Tax Saving (after 30 years, on 4 properties): R2,144,780* Projected Green Bond Savings (0.25% on 10.50% interest) after 30 years: R323,373*
This example indicates a gross rental yield of 12.4%, an annualised return on investment of 19.9% and an initial monthly shortfall of R7,412, which reduces annually.
Over the 30-year bond term, the example predicts a total portfolio value of R68.5 million and monthly income from R245,000. It also shows a projected Section 13sex saving of R2,144,780 over 30 years on four qualifying properties, together with projected green bond savings of R323,373 based on a 0.25% discount and the assumptions in the example.
These figures are illustrative only. Your ROI, rental income amount, tax benefits, financing costs and interest-rate savings will change from investor to investor, based on the properties, financing options and property market conditions.
Why does the stack matter?
The benefits of Green 13 lie in its combined power. Instead of perceiving tax, financing and acquisition costs individually, investors can view different benefits that, when combined, work in unison within a property portfolio.
The thought behind Section 13 Sex bulk deal property investment is: build your portfolio at scale, choose your qualifying properties carefully and understand the potential savings at every stage.
For IGrow investors, this stacking approach can deliver bulk property investment savings that can be as much over time as the initial purchase price of one of your investment properties, and align with your long-term goal of building a buy-to-let property portfolio.
If you are looking into a combined Section 13 Sex green bond bulk deal property investment, speak to an IGrow property investment strategist today to see how this stacking system could work for you.
Frequently Asked Questions
Green 13 is an illustrative bulk property investment deal combining three potential benefits: IGrow’s Signature Discount, Section 13sex eligibility and the green bond benefit. There is limited availability of rental properties qualifying for both green bond discounts and Section 13sex tax benefits at any given time.
SARS requires the taxpayer to own at least five qualifying residential units in South Africa, subject to the other requirements. Your primary residence is excluded from this qualifying investment-property requirement.
No. Specific requirements apply, including requirements relating to new and unused residential units, their use and ownership and how many units you need to own to qualify. Investors should obtain professional tax advice from IGrow Accounting and Tax Advisory and review the terms of this carefully before committing to applying for these taxable income deductions.
It is an interest-rate reduction available on qualifying green (eco-friendly) EDGE-certified properties from all banks. 0.25% saving on the interest rate is correct at the time of publication.
Yes. The Green 13 concept demonstrates how qualifying properties can offer different, compounding benefits within the same portfolio. Each investor and property must be eligible.
No, they are not. Instead, the portfolio figures are illustrative projections rather than guarantees. Actual results depend on property performance, rental income, financing, tax circumstances, interest rates and other factors. However, they have been created by our Financial Valuation Modelling Analyst with conservative industry-standard projections and are a good indication of what you can expect. Financial analyses for all individual property units are included on every property landing page and will be carefully explained by your financial strategist during your free consultation.
