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|
|
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|
|
Number
of units |
|
|
| Single
Residential |
1 |
2 |
3 |
4 |
5 |
Total |
|
|
|
|
|
|
|
|
|
|
|
| Cost
per plots (Erf) |
|
|
|
|
|
|
|
|
| Development
cost per unit |
|
|
|
|
|
|
|
|
| Extras
< R 7,000 acquired by investor |
|
|
|
|
|
|
|
|
| Unit
cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property |
|
|
|
|
|
|
|
|
| Growth
rate in property value |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental
income |
|
|
|
|
|
|
|
|
| Rental
income as percentage of unit cost |
|
|
|
|
|
|
|
|
| Rental
escalation per year |
|
|
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|
|
|
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|
|
|
|
|
|
|
| Property
rates, taxes, insurance & levies |
|
|
|
|
|
|
|
|
| Property
rates, taxes, insurance & levies as percentage of unit costs |
|
|
|
|
|
|
|
|
| Escalation
in property rates, taxes, insurance & levies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance |
|
|
|
|
|
|
|
|
| Amount
financed by loan |
|
|
|
|
|
|
|
|
| Interest
rate on loan |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Personal
taxation |
|
|
|
|
|
|
|
|
| Marginal
taxation rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Internal
rate of return (IRR) * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year 1 (1 Month) |
Year 2 |
Year 3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return
on investment** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
cash inflow / (outflow) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deduction:
Section 13sex |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax
saving as result of investment |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
|
| Assumptions
& Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The
following assumptions are made: |
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|
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|
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|
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|
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| Except for the return on investment all other measurements
assume that the property is sold at the end of year 20. |
|
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|
|
|
|
| It is assumed that taxation is paid or received in the
year that the obligation arises. |
|
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|
|
|
|
|
| Several other assumptions were made in order to simplify
the calculations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| *
Internal rate of return (IRR) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| The internal rate of return is calculated on the cashflows
excluding the finance component. |
|
|
|
|
|
|
|
| The
interest component has been included in the tax computation. |
|
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|
|
|
|
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|
|
|
|
|
|
|
|
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| **Return
on investment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sale of the property after deduction of costs and tax -
Cost of property + Net Cashflow after tax |
|
|
|
|
|
|
|
| Cost of property |
|
|
|
|
|
|
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|
