Latest news with #R22
The Citizen
7 days ago
- Business
- The Citizen
Zululand gets R22 million for flood damage repairs
Minister of Co-operative Governance & Traditional Affairs (CoGTA) Velenkosini Hlabisa has announced a R139 million allocation to KwaZulu-Natal municipalities for disaster relief efforts. R13 million was allocated to Zululand District Municipality; Ulundi Local Municipality received R6.2 million; AbaQulusi Local Municipality received R12 million; and Edumbe Local Municipality received R10 million. Zululand District Municipality Mayor Michael Khumalo has welcomed the allocation. 'This additional funding will go a long way towards accelerating our efforts to mitigate disaster risks and put into place proactive measures. We pledge to utilise this grant promptly and follow procedures and protocols as established by the department to ensure accountability and transparency,' said Khumalo. The mayor added that the Zululand District has experienced unprecedented challenges due to heavy rains and flooding, which resulted in significant damage to water infrastructure and other public facilities. The combined funding of R22 million will be used for repairs to damaged water schemes, sanitation systems and other essential municipal services. He also urged residents to continue working together with the municipality to ensure that the recovery efforts are inclusive and transparent. This grant will be transferred in phases. The minister's office reported that the department is currently awaiting transfer dates from the National Treasury. CoGTA MEC for KZN, Reverend Thulasizwe Buthelezi, has also welcomed the announcement, since municipalities in the province were impacted by incidents that caused billions of rands worth of destruction. He said this allocation is specifically earmarked for disaster response and recovery. The funds will provide much-needed relief to communities, facilitating the installation of new disaster mitigation measures and the improvement of roads, as well as water and sanitation infrastructure. This allocation also underscores the national government's commitment to supporting the province's ongoing recovery and rebuilding efforts. ALSO READ: Zululand District Municipality elects new mayor The news provided to you in this link comes to you from the editorial staff of the Vryheid Herald, a sold newspaper distributed in the Vryheid area. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Daily Maverick
10-07-2025
- Business
- Daily Maverick
Income vs capital growth — reconsidering the worth of rental properties as retirement nears
When you reach retirement you now need to make a call on whether the capital growth and rental income on your property are better than investing in something else like a balanced fund. Question We will be retiring at the end of the year and have several investment properties in Cape Town that we rent out. We want to use the income from these properties to supplement our pension. I recently took a close look at the rental income we are getting, and when I deducted the costs of the levies and insurances, I realised that these properties are only generating an after-cost income of R22,000 a month, which is less than the R30,000 we need. The properties are worth R9-million. What should we do? Answer There is a lot of merit in buying property when you start out on your financial journey. The big advantage is the concept of leverage. You pay a deposit on a property and take out a loan for the balance of the purchase price. Over the years, you get the capital growth on the full value of the property (not just your deposit). If your monthly bond repayments are pretty much the same as the rental you have been paying for a property, then buying property is a great way to build up long-term wealth. However, when you reach retirement, the financial dynamics of property ownership change. Your bond should have been settled and you now need to make a call on whether the capital growth and rental income on this asset are better than investing in something else like a balanced fund. At this stage of your life, income rather than capital growth is the more important factor. I will run through some factors you should consider when trying to decide whether to keep or sell your properties. Income Rental properties that are not actively managed can underperform. Rent may not reflect market rates, especially if there's reluctance to increase it for long-standing tenants. It may be worth consulting a rental agent to assess whether your income can be increased. Tax and costs Rental properties come with ongoing costs – levies, insurance, rates and management fees. It's also important to remember that your net income is fully taxable at your marginal income tax rate, which can significantly reduce what you take home each month. Alternative investment option: a balanced fund You may want to consider selling and reinvesting the proceeds into a flexible investment such as a balanced fund. This can offer several advantages: Income: A well-structured balanced fund can support a sustainable withdrawal of about 5% annually. On a R9-million investment, this translates to a monthly pre-tax income of about R37,500 – significantly more than your current rental income. Tax: Most of the income from a balanced fund is treated as a return of capital or as capital gains, both of which are taxed at lower effective rates than rental income. Only 40% of capital gains are included in your taxable income, making this structure more tax efficient. Risk: A balanced fund spreads your investment across asset classes – equities, bonds, cash and property – reducing the concentration risk that comes with owning just a few properties in a single location. Involvement: Properties require constant attention – tenant management, maintenance and the risk of vacancies. A balanced fund is far more hands-off. Once set up with the help of a trusted adviser, it requires minimal involvement. Liquidity: Accessing capital from property is slow and usually requires either selling or taking out a bond. A balanced fund provides much easier and faster access to capital, offering flexibility if your needs change. If increasing your rental income is not feasible, it may be worth selling one or more properties and reinvesting in a balanced fund. This could give you higher income, better tax efficiency, less hassle and a more flexible and diversified retirement strategy. DM Kenny Meiring is an independent financial adviser. Contact him on 082 856 0348 or at Send your questions to [email protected] This story first appeared in our weekly Daily Maverick 168 newspaper, which is available countrywide for R35.
IOL News
27-06-2025
- Politics
- IOL News
Water Crisis: Out of water, out of time, and out of excuses
More than R22 billion is owed to water boards, with entities such as Sedibeng Water already bankrupt. Magalies Water and Vaal Central Water were on the verge of collapse, threatening water supplies to entire provinces. Image: Doctor Ngcobo/Independent Newspapers SOUTH Africa's water crisis is spiralling out of control, with nearly half the country's drinking water now unsafe, wastewater treatment plants collapsing, and billions of rand owed by bankrupt municipalities. A damning presentation to Parliament's Select Committee on Water and Sanitation this week revealed a system in freefall, where corruption, incompetence, and neglect have pushed the nation to the brink of a full-blown public health disaster. The Department of Water and Sanitation (DWS) admitted that nearly half of the country's water supply systems failed basic safety standards, a shocking increase from just 5% 10 years ago. The Blue Drop Report for 2023 painted a grim picture: Gauteng, with the most skilled personnel, has the best-performing systems, while the Northern Cape, plagued by severe staff shortages, had the worst. Meanwhile, a shocking 66% of municipal wastewater treatment plants are in disrepair, with more than 60% of municipalities discharging partially treated or even raw sewage directly into rivers. 'We are facing a water pollution crisis,' Deputy Minister Isaac Seitholo told MPs. 'Unless we urgently fix dysfunctional wastewater treatment works, the pollution will escalate, with devastating consequences for human health, the environment, and local economies.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading The Vaal River, which supplies about 60% of the country's population, is among the hardest hit. Despite the launch of the Vaal River Anti-Pollution Forum last October, Seitholo admitted that pollution continued largely unchecked. The Wilge and Vals rivers were also severely contaminated, with sewage spills and industrial waste turning them into toxic hazards. The EFF's Khanya Ceza demanded answers: 'How can we allow our people to drink increasingly contaminated water while municipalities and industries dump waste with impunity?' He pointed to the SA Human Rights Commission's findings, which revealed severe water access failures in Bushbuckridge, eMalahleni, and other neglected regions. The financial collapse of municipalities is accelerating the crisis. More than R22 billion is owed to water boards, with entities such as Sedibeng Water already bankrupt. Magalies Water and Vaal Central Water were on the verge of collapse, threatening water supplies to entire provinces. To recover debt, National Treasury is now withholding equitable share funds from defaulting municipalities, but this risks crippling service delivery even further. 'If these water boards collapse, entire regions will be left without water,' director-general of the DWS, Dr Sean Phillips, warned. Deputy Minister Mahlobo acknowledged the dilemma: 'Municipalities don't pay, infrastructure fails, and communities suffer. We are trapped in a vicious cycle.' The Committee heard shocking accounts of delayed mega-projects, rampant corruption, and violent disruptions by construction mafias. The Clanwilliam Dam wall project, initially budgeted at R2.2bn, ballooned to R5.6bn, with only 22% completed. Meanwhile, the Kroonstad wastewater treatment works, which cost R105 million, is non-functional despite years of work. 'Construction mafias have killed workers in eThekwini and Rand Water projects,' Mahlobo said. The DWS has now classified key water infrastructure as national strategic assets, deploying law enforcement to protect sites, but progress remains slow. Despite ambitious targets to eliminate water backlogs, MPs questioned how this could be achieved when informal settlements expand daily and rural municipalities such as OR Tambo, Amathole, and Sekhukhune remain chronically underfunded. The MK Party's Edward Nzimande slammed the DWS for failing to address inequality: 'Why are dumping sites and pollution always concentrated in townships and rural areas, while affluent suburbs remain untouched?' The DWS insisted that new reforms — such as the National Water Resource Infrastructure Agency (NWRIA) and public-private partnerships (PPPs) — would rescue the sector. However, with only 5.7% of infrastructure needs currently funded, scepticism remained high.
IOL News
26-06-2025
- Business
- IOL News
Joburg landlord in legal battle over property renovated by tenant and later sold for R3 million
A Johannesburg man's ambitious plan to transform his rental property into his future home has resulted in a significant legal defeat. Image: Freepik A Johannesburg man's ambitious plan to transform his rental property into his future home has resulted in a significant legal defeat, as a court has denied his claims for reimbursement for renovations made while renting. The saga began in January 2010 when the tenant entered into a two-year lease with his landlord, setting an initial rent of R20,000 per month, along with utilities, and stipulating a minimum 10% escalation upon renewal. However, both parties opted to delete certain clauses from the lease contract, which later proved pivotal in the ensuing disputes. The landlord said this was done to remove any obligations he may have toward the leasing agent, Jawitz Properties. Meanwhile, the tenant claimed that they had reached an oral agreement that he would put in an offer to purchase the property as soon as his financial position allowed him to obtain a home loan. After the lease expired in 2012, the landlord shifted the rental agreement to a month-to-month basis, increasing the rent to R22,000. In August 2015, he relocated to Canada, and his mother, a qualified estate agent, managed the property, including the collection of rent and inspection of the property on his behalf. The rent remained constant until December 2017, when it was increased to R 28,000. During this time, the tenant was an erratic payer; he skipped monthly payments or sometimes paid for more than one month's rent at a time. In May 2018, the landlord's legal representatives informed the tenant of R36,000 owed in rent arrears and invited him to submit an offer to purchase the property, which was listed for sale at R3.6 million. The tenant proposed a cash offer of R3.3 million, which the landlord rejected. The property was ultimately sold in March 2022 for R3 million. Subsequently, the tenant was evicted in December 2021, reportedly owing approximately R1 million in unpaid rent. In an effort to recuperate some of the funds, the landlord sought relief in the Johannesburg High Court seeking at least R896,000 from the unpaid rent. Meanwhile, the tenant argued that there was a verbal agreement within the first two years of the lease and based on that, he made several substantial improvements to the property because he had plans to buy the property. Among the renovations was a R394,000 kitchen refurbishment and a R520,000 painting and waterproofing, which the tenant argued increased the property's market value significantly. He argued that because of the improvements, the market value of the property increased from R2.6 million to R3.5 million and that the property was ultimately sold for R3 million. The tenant claimed over R900,000 for contractual damages and, in the alternative, an unjustified enrichment claim of R400,000. Furthermore, he didn't deny that he did not pay rent between December 2017 until his eviction in December 2021. He only paid for two months in March and April 2018. He explained that he refused to pay the rent because the landlord unreasonably increased the rental by 21% from R22,000 to R28,000. On the other hand, the landlord didn't deny the renovations; however, he challenged the necessity of the improvements and the obligation to reimburse tenant the expenses incurred. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Acting Judge Sha'ista Kazee presided over the case and noted that from the evidence presented, no verbal agreement existed regarding purchase discussions. She highlighted that the tenant had been granted a formal opportunity to purchase the property, but his offer was not accepted. Additionally, under the terms laid out in the lease agreement, the landlord was well within his rights to increase the rent by a minimum of 10% every two years. The judge underscored that if only this escalation had been considered, the rent would have already exceeded R28,000 by December 2017. Regarding the renovations, the judge found that the lease agreement's Clause 12 expressly denies the tenant any entitlement to reimbursement for improvements made to the property. Stating that: "with or without the consent of the lessor, he shall in any event receive no compensation therefore and shall either at his own expense remove same immediately at the request of the lessor'. Meanwhile, it was also noted that no inspection was conducted when the tenant left the house and when he left, he removed some of the improvements he made to the property. This includes a geyser in the garage. He also took the solar geyser, his furniture and other movables. Ultimately, judge Kazee ruled in favour of the landlord's claim for R896,000 and ordered that the tenant pay the legal costs of the proceedings. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
Daily Maverick
26-06-2025
- Business
- Daily Maverick
Cape Town set to pass budget, while civic bodies consider legal challenge
A special council meeting will be held in Cape Town on Thursday, June 26 to discuss and adopt the city's revised 2025/2026 budget, after a process which saw the city making adjustments to it after complaints over tariff increases and other issues. Tariff increases, rebates for pensioners and unaffordable rates — these are some of the key issues that will take centre stage on Thursday morning in Cape Town when the city's budget is due to be adopted. There have been indications that opposition parties will not vote in favour of the budget, and ratepayers' organisations have questioned rates and tariff increases. advertisement Don't want to see this? Remove ads When the city tabled the draft 2025/2026 budget on 27 March, it came under fire for raising tariffs and including a new citywide cleaning fee. Ratepayers and civic organisations said they would object to the new budget. Just one day before public comment closed in May, the city announced expanded measures for relief, particularly for families in lower-value homes, as well as softening tariffs for the middle class, according to a media release by the City of Cape Town (CoCT). Read more: Petitions, statements and condemnation: Cape Town's draft budget controversy explained Some of the additional expanded measures announced by the city include extending the 'first R450,000 rates-free' benefit to all homes up to a R7-million property valuation (up from R5-million). Another measure includes more pensioners qualifying for this benefit by raising the qualifying threshold to a R27,000 monthly income per household (up from R22,000), regardless of property value. Public comment on the new adjustments closed on 13 June. However, there are still some concerns from political parties and ratepayers' associations. Speaking at a media briefing on Wednesday, 25 June, the ANC caucus leader in the council, Ndithini Tyhido, said his party would not support 'a budget that fails the people of Cape Town'. The ANC is the biggest opposition party in the council. advertisement Don't want to see this? Remove ads 'While the DA-led administration attempts to portray this adjustment as a response to the public input, the reality is that the revised budget remains fundamentally anti-poor, anti-development and deeply exclusionary,' he said. The party, he claimed, had made it clear that the original draft budget 'failed to address the structural inequalities in our communities'. Ratepayers' association considering options The Cape Town Collective Ratepayers' Association (CTCRA) said it still had concerns about the new adjustments, including that 'total municipal rates bill increases are many multiples of the inflation rate, especially for property owners with values [of] R5-million and more, who face double-digit increases'. The association comprises 57 ratepayers' associations and civic organisations from across the city. The CTCRA said 'alternative additional revenue sources have not been included'. Another concern was that 'commercial properties are exempted from the introduction of the citywide cleaning charge. This is not fair to residential property owners who do not have this exemption.' In response to Daily Maverick's questions, Bas Zuidberg, interim chair of the CTCRA, said, 'Given that it is probable that CoCT will approve this budget, we will be looking into the merits of a legal challenge to the principle of calculating fixed charges based on the property valuation. advertisement Don't want to see this? Remove ads 'We believe, as do many others, that this a breach of the Municipal Systems Act and sets a dangerous trend for Cape Town as well as a dangerous precedent for the country as a whole.' advertisement Don't want to see this? Remove ads Some of the priorities in the city's budget include 500 new metro police officers spread across wards and more than 200 new officers to protect service delivery teams from criminals. Other projects include a R4.5-billion allocation for the new MyCiTi route linking Khayelitsha, Mitchells Plain and other communities to Wynberg/Claremont. The city has a budget of R2-billion for a project that will reduce sewage spills and water bursts by replacing 100km of sewer and 50km of water pipes per year; R3.5-billion will go towards road upgrades, repairs and congestion relief. According to a report by the city on the public comment process, 1,147 individual submissions were submitted, with a 'significant portion of the feedback focused on the proposed increases in property rates and tariffs, with concerns raised by individual residents, ratepayers' associations, and community organisations'. DM
