FREQUENTLY ASKED QUESTIONS
What is the address?
87 Loop Street, Cape Town, South Africa, 8001
Who is the Developer?
Who is the Architect?
How do I purchase an apartment?
- Sales go live on the 16th of March at 12:00 midday.
- Prior to the launch you can create a shortlist of your favourite apartments on sales.thetokyo.co.za/register
- Once sales go live, to reserve a unit, simply complete the online reservation process by filling out your details and paying a R5000 non-refundable deposit via PayFast using any the following methods:
- Credit or Cheque Card
- Instant EFT
- At this point, the unit will be reserved and you will receive a confirmation email to approve your reservation.
- An agreement of sale will then be emailed to you, which you’ll need to sign and return to your assigned agent within 24 hours. (Please note electronic signatures not allowed)
- You as the buyer then have 3-days to pay your deposit of 10% of the purchase price into the conveyancer’s (STBB) trust account. The funds held in trust will accrue market-related interest in the favor of you, the purchaser, until the development is transferred in 2023.
- You will need to secure the balance of 90% of the purchase price within 21-days from the date of signature. This can either be secured through a bond approval, a bank guarantee or cash.
- Alternatively, we will also accept a 30% deposit with the balance payable 60 days prior to transfer in 2023.
When is the completion date?
Anticipated completion is May 2023 – this is based on construction commencing on 1 September 2021 and is subject to change. The transfer should take place approximately 2 months after completion.
Are short-term rentals / Airbnb bookings permitted?
Short-term rentals will be allowed. Therefore, units will be able to be marketed on Airbnb and other similar platforms.
How does the Guaranteed Rental work?
- Applicable to the 5th, 6th, 9th and 10th-floor apartments only.
- The guaranteed rental is for the first 12 months from the date that transfer takes place.
- This would coincide with when your bond repayments would begin.
- The guaranteed rental does not apply should you wish to live in the apartment, only if you give Rawson a sole mandate to rent out your property on your behalf.
- The bond costs are based on the current prime lending rate (7%) at the date of posting (1 March 2021).
How do I reserve an apartment?
Simply visit: sales.thetokyo.co.za on the 16th of March 2021 at 12:00 midday to reserve your preferred apartment.
How do I qualify for the R100 000 launch discount?*
- Complete your Buyer Profile to activate your discount at sales.thetokyo.co.za/register
- On the launch day (16th March 2021) reserve your unit/units
- The discount applies to each unit you purchase.
- Sign an Agreement of Sale and pay your 10% deposit within 7 days
- Get your finance approval within 21 days (natural person) & 35 days (company) from the acceptance of your agreement of sale.
*If finance is not approved and the deposit is not received within the above-mentioned time frame then the launch discount will no longer be applicable.
What does the security consist of?
- 24-hour concierge service
- 24-hour manned security
- Biometric access controls
- Video intercom to each unit
- CCTV surveillance and on-site monitoring
- The Tokyo is located within the City of Cape Town CID district which is actively patrolled.
Is Air-conditioning available?
The Tokyo is fitted with air-conditioning infrastructure and each unit can be connected to it on a case by case basis. This will come at an additional cost of R30 000 per unit.
Is there Parking?
The Tokyo apartments are sold without parking. Our research has shown us that a high percentage of tenants these days living in our developments do not require parking and as such we have excluded parking from the building AND THE PRICE – you are therefore not paying for parking that many of occupants will not use anyway. The building is centrally situated so many occupants will use Uber and similar services to be able to get to wherever they need to go at affordable rates.
UBER X (Est. Cost)
R27 Mediclinic Cape Town
R31 Cape Town Stadium
R32 Oranjezicht Market
R33 V&A Waterfront
R41 Lions Head Hiking Trail
R48 Table Mountain
R65 Clifton 4th Beach
R178 Cape Town International Airport
All that said, there is a wide variety of parking nearby including the building next door, so there will be secure parking available, to rent or buy, should it be needed.
Please see the closest 5 options below:
Tarquin House (Neighbouring building)
50 bays available
Purchase: R250 000 per bay
Rent: R950per month
Old Christian Barnard – 39m away
Rent: R 55 – R75 per day
Riebeeck Square Parking Lot – 280m away
234 bays available
Rent: Hourly – maximum of R75 per day
Wale Street chambers – 240m away
13 Bays available
Rent: R1380 per month
77 Burg St, Garage – 290m away
Rent: R1200 per month or per hour
What kind of returns can investors expect?
Historically, capital growth in an area like the CBD has seen an average of around 7% per annum, plus a rental return of about 7,5% gives you an annual return of 14,5% per year which is an almost unbeatable investment.
In short, you can own an apartment for just R998 per month – see calculations below which are based on a R1 400 000 apartment:
- You get R 100 000 discount if purchased on launch day meaning the purchase price is now R1 300 000
- A 90% bond will cost you R 9071 per month at the prime lending rate.
- Rates and levies are R1 682 pm
- = Total monthly cost – R10 753 pm
- Guaranteed monthly rental – R9 755pm
Your monthly contribution – R998 pm
Benefits of buying now include:
- R 100 000 off the asking price on launch day
- Guaranteed rental for 1 year on selected apartments
- No transfer duty
How do I apply for a bond?
Rawson Finance can assist you at no charge and will apply to all the major banks on your behalf to find you the best interest rate. Should you need their assistance please let us know and we can put you in touch with them.
If you would like to make the process as easy as possible we suggest you get a pre-approval done before launch day, which will make the process much quicker once you have secured your unit.
Please let us know if we can assist you with a pre-approval.
Investors still have access to powerful tax incentives, including the popular Section 13sex of the Income Tax Act No 58 of 1962. This scheme enables any taxpayer who owns five or more new, residential rental units, to claim up to 55% of the purchase price as a tax deduction. (Deductible over 20 years)
How it works
- Purchase five units at R1,2 million each = R6 million
- Discount = R500 000 (R100 000 per unit)
- Final purchase price = R5,5 million
- Deemed purchase price = 55% of final purchase price
5% of the deemed price may be used as a tax deduction (residential building allowance).
This works out to a tax deduction (tax write-off) of R151 250 per year for 20 years.
Total tax write off = R3 025 000 (over 20 years)
- The taxpayer must own at least 5 residential units. A residential unit refers to a building or self-contained apartment, mainly used for residential accommodation with the exclusion of structures used for business purposes, for example, hotels.
- All units must be situated in South Africa.
- Residential units must be new and unused. (For example, buyers of flats that had previously been occupied would not qualify for this incentive.)
- The units must be used solely for the purpose of trade (i.e. residential letting). This prevents housing claims for personal use.
Urban Development Zone
The UDZ expiry date has recently been extended by *2 years, and any brand new property that transfers before expiry is eligible for up to 55% Tax deduction from SARS. (Deductible over 11 years)
In order to claim the tax allowance and/or incentive and/or deduction, certain requirements have to be met. The listed examples may not apply in certain instances. The Developer, its representative and/or its agents, do not provide tax advice. All material in respect of the Development has been prepared for information purposes only and it is not intended to provide, and should not be relied on for, tax advice. Before concluding any transaction with the intention of making use of either of these tax incentives, the Developer specifically advises that a purchaser should consult his/her/its own tax adviser. The Developer cannot be held liable for any loss, howsoever arising. Furthermore, the availability of these tax structures to any purchaser is not a warranty, express, tacit, implied, or otherwise, from the Developer in relation to the transaction.
Furthermore, kindly note that the UDZ tax allowance and/or incentive and/or deduction for The Tokyo is subject to and could be impacted by SARS amending the UDZ provisions after March 2023.
Within the building, there will be a fully fitted fitness centre on the mezzanine level.
Fibre & DStv
Every apartment comes with fibre & DStv connection.
Full lift access via 2 lifts is provided from the ground level to every floor.
Electricity & Water Prepaid
Electricity and water are prepaid and meters installed in each apartment.
Furniture & Appliance packs
These will become available towards the completion date of the development. Please enquire with our sales team should you wish to find out more.