Frequently Asked Questions

South Africans are great travellers and are likely to visit all corners of Intervals world. Europe is certainly a popular destination, but they also travel to the USA, particularly Orlando, and as far afield as South America, Australia and China.

Indeed yes, fractional property ownership has been positioned as exclusive lifestyle investment in luxury real estate. This is to meet the consumer demand for a more hassle free form of luxury holiday home ownership that is costs less that 100% ownership and offers more ‘bricks and mortar’ ownership than Timeshare.

The first fractional ownership properties to enter the South African market were very luxurious and each was situated within some of the most prestigious resorts on the continent, this set the benchmark for others to follow.

The fractional ownership concept was commercialized in the United States aviation industry by a business pioneer by the name of Richard Santulli. Net Jets (founded in 1964) offered a product called the Jet plan for people that wanted a more hassle free yet flexible form of jet ownership.
 
By the 1990’s the fractional ownership concept was a substantial part of the aviation industry, and around the same time the concept was becoming very popular in the US vacation resorts. By 2006 there were over 260 resorts that offered fractional ownership in the USA alone.
 
The fractional boat ownership concept is now becoming very popular all around the world, with some exiting programs that offer a mix of property and boat ownership.

We are all different and our motivations for purchasing fractional shares may differ, however there are some fundamentals that most of us expect when buying a fractional ownership share.

Honesty and transparency would be high up on the list. Owners will expect to be kept up to date with important aspects regarding the management of their residence. With particular reference to finances, appointing of service providers and the general upkeep and maintenance of their investment.

Fractional owners will expect that the residence is clean and well maintained when they check in for their usage.
And one of the most important aspects would be that the managing agency or developer has a long term interest with the residence.    


 

The most popular fractional homes are 2 bedroom, 2 bathroom or 3 bedroom residences. The footprint or size of the residences vary, as some may be apartments and others villas and lodges. South African fractional homes are known to be generally larger in size that in other parts of the world, particularly on the wildlife and golf estates.

Developers need to be aware of what consumers are looking for, over the past 5 years fractional ownership products have evolved as the global economies recover and consumer’s desires and requirements have changed. There are a few key elements that consumers are favoring.

Flexibility of use

The fractional products that offer local or global exchanges provide owners with the flexibility to either use the residence they have purchased into, or exchange their time into another residence or resort around the world.

Service & experience
 
Fractional homes that are supported by a hospitality operator (such as a hotel) provide the owners with a more comfortable usage experience, the higher the level of service the more comfortable the stay.

Quality

Luxury Fractional ownership is an aspirational purchase; therefore the fractional homes that are decorated to a higher level of luxury and comfort will appeal to a broader market. This would include quality beds & bedding, sofas, entertainment, kitchens and appliances as well as décor.   

The overall key to success is providing a product at the right price that owners enjoy and would recommend to friend and family. 

The most widely implemented in free standing fractional homes is the ‘rotating roster system’. These rosters work on a rotating weekly usage schedule within each of the 4 seasons per year. In free standing fractional homes this system is one of the simplest and fairest ways for each owner to get peak time in the residence over the years, for example: In each of the 4 seasons there will be 13 weeks (13 weeks x 4 seasons = 52 weeks) each owner is allocated 1 weeks usage within each of the 4 seasons, or 1 week every quarter.

There are a variety of usage models available in the market with some increasingly flexible usage models being introduced. Companies that offer shares in a portfolio of properties will be able to provide more flexibility as the owner has more options available to them.  

Private residence clubs and multiple property fractional ownerships typically offer the owners 7, 14, 21 or 28 days usage per annum. Owners then need to request or pre-book time with the managing agency.

It is advisable that you match your fractional ownership purchase with your personal usage requirements.

From the research we have done, most of the buyers of South African fractions are in the age range of 45 to 56. They already own one or more properties and fractional ownership now offers them a more hassle free form of holiday home ownership with less capital outlay and risk associated with 100% ownership.

The majority of enquires into South African fractionals are from the larger business node areas such as Gauteng, and Cape Town, however after a very successful 2010 World cup there has been a substantial increase in interest from international investors in counties such as the USA, UK and mainland Europe.