Common elements of the real estate Conveyancing process

Rental growth in the remaining sectors will be supported by relatively healthy retail spending and low vacancy rates. With opportunities to construct new shopping centers confined to new growth areas / land releases, a majority of new retail supply has been in the form of extensions and refurbishments to existing centers. Various online property brisbane cbd conveyancing lawyers Refurbishment and reconfiguration together with active management continues to be a crucial requirement for owners of secondary centers wishing to remain competitive.

Although still somewhat spotty, there are definite inroads of digital photography into real estate. The higher purchasing power of dollar earners has resulted in dollars being the prevailing currency for the better property stock, while transactions at the lower end of the market take place in shillings. There are no statutory laws governing property brokerage in Tanzania. Letting fees to agents are normally paid by the landlord and are typically one month’s rent for residential lettings and 3-5% of the first year’s rent for commercial lettings. Sale fees, paid by the vendor, are usually 3% of the sale price for residential property.

Legal costs range from 2.5% of annual rent or sale price to up to 10% for smaller properties and are met by the landlord or vendor. Capital Gains Tax was introduced in July 1999 and is applicable to all property transactions at a rate of 10% of the gain after inflationary adjustments. Stamp Duty, at a rate of 4%, is payable by the purchaser.

VAT, which was introduced in July 1998, is payable on all commercial property rents and service charges at a rate of 20%.Withholding Tax of 15% is payable on all property rental income above Tsh 500,000 per annum (US$625), although some investors can qualify for a five year tax holiday. Property Tax at 0.15% of International House and 50 Mirambo Street, Dar es Salaam rateable value is payable annually by the tenant for both commercial and residential property.

Up until the early 1990s, Dar es Salaam’s traditional CBD lay in the area along Samora Avenue in the heart of the city centre. As the liberalised economy grew and new buildings were erected, the CBD became increasingly congested and development opportunities became scarce. The opening of the Sheraton Hotel on the edge of the CBD in 1995 drew new development westwards to Bibi Titi Mohamed Street. At the same time, the Government released more land for development in the Gardens area to the north of the CBD, which has established itself as a prime location for offices and the address of choice for embassies. As Tanzania opened its doors to foreign investment, the demand for good quality space was severely frustrated by poor supply.