Fractional Ownership News

Cost effectiveness of fractional ownership as a vacation ownership option.

Date: 28/09/2009
Article source: www.realestateweb.co.za

Cost effectiveness of fractional ownership products. Why rent your holiday accommodation when owning it makes financial sense?

The current economic constraints have undoubtedly caused most consumers to ensure their money is spent wisely - no less so those who are able to enjoy leisure time away from home and are considering what kind of product within the property leisure market suits their pocket.

Jackie Bauermeister, national sales manager for Pam Golding Fractional Ownership says there are currently prime-located joint vacation ownership products available which enable purchasers to enjoy the benefits of holidays in a prime location, and at the same time purchasing a product which offers the best chance of capital security. Each property is owned by 13 shareholders, allowing four weeks use per annum per share. The usage plan rotates, ensuring each owner a week in every season, and all costs are shared and managed on behalf of the owners.

Says Bauermeister: "Those able to still enjoy leisure holidays away from home will most likely be renting a holiday house or spending time in a hotel.

Typically a family of four taking a holiday of say 14 days of the year spend approximately R28 000 and upwards on renting holiday accommodation, and at the end of this one is left with precious memories and photographs. The vast majority of these families probably own their home instead of renting it - why rent your holiday accommodation when owning it makes financial sense and with fractional ownership you can do this without any of the maintenance and other hassles associated with second-home ownership.

"Fractional ownership properties have the ability to appreciate and with the movement in the market, render a short-term rental income when you are not using the property yourself, while also affording usage and leisure time in a luxury environment - one which you may otherwise not be able to afford. In addition, each of these destinations can be inter-exchanged which means you can buy at the destination you believe will achieve the best capital appreciation over the next few years while still being able to use the other destinations within the Pam Golding Properties portfolio of fractional ownership residences.

"This portfolio provides access into exclusive resort destinations and luxury accommodation that one may not ordinarily be able to afford individually even by purchasing a property outright. Pam Golding Fractional Ownership recently affiliated all its destinations with Platinum Destinations, affording owners the ability to exchange their weeks of ownership to holiday at other destinations around South Africa and overseas (visit www.platinumdestinations.co.za). This adds additional value to the use of owning a fractional ownership by providing owners with greater flexibility - now you can vary the destinations and even save up weeks for future use if you cannot make use of your weeks in the calendar year," she says.

At San Lameer, a highly successful and well established golf and beach resort situated in a lush sub-tropical setting on the KwaZulu-Natal south coast and just two minute's walk to a protected, Blue Flag beach, PGP are marketing fractional ownership in a two bedroom villa at R275 000 per share - which is located right on the lagoon in one of the best positions on the estate. These are furnished to a high standard, with a spacious, open-plan design flowing to outdoor areas and deck, covered terraces and including a surround-sound entertainment system, flat screen television, air conditioning and a two-seater golf cart.

Says Bauermeister: "During 2008 these two bedroom units enjoyed excellent occupancy of up to 70 percent both through owner usage and via the rental pool, which underlines the popularity of this sought after location.  "

San Lameer is minutes from the popular resort town of Margate, 20 minutes from the Wild Coast Casino and a scenic 75 minute drive from Durban. It is close to tennis courts, bowling greens and scenic walking trails, making it an ideal family-friendly environment. The estate offers a world-class hotel and restaurant on site, while numerous other highly rated golf courses are within easy reach.

On the Garden Route just 20 minutes from George International Airport at the luxury Pinnacle Point Golf and Beach Resort, with an 18-hole championship golf course rated as one of the top 10 new golf courses in the world, fractional ownership units comprise three bedrooms and three bathrooms - with scenic sea views from entertainment areas and fitted with state of the art appliances. Priced at R385 000 per share (or fraction), the units are within close proximity of the hotel, casino, driving range, swimming pool and walking trails as well as other activities on offer at the resort, which is managed by a professional hospitality operator. The resort is a three-hour drive from Cape Town.

For those wishing to vacation in Cape Town with Blouberg's spectacular white sandy beaches almost on the doorstep, fractional units are available in Horizon Bay, a newly constructed, multi-storey complex with its own swimming pool and sweeping views across the ocean to Table Mountain and Robben Island. Priced at R275 000 per share, the two bedroom units (with balcony) are professionally decorated. With its long stretches of beach Blouberg is especially popular among families, sports enthusiasts and surfers. In addition to its natural beauty and relaxed atmosphere, it offers a variety of excellent restaurants, modern shopping malls and cinemas.

Pam Golding Properties, Fractional Ownership, Holiday homes, Jackie Bauermeister 22 May 2009 22 May 2009 

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