Fractional Ownership & Luxury Property Rental
Not only does the capital growth on luxury properties far exceed that of most
asset classes, but it is also certainly worth considering the lucrative and ever
increasing rental returns that such a property can generate. Take into
consideration that the daily rental income earned by a four bedroom house on a
luxury estate can easily range between R3000 and R5000. With occupancy rates of
65% comfortably achieved on a premier estate, such as Zebula Country Club,
rental returns can give an investor - who has purchased a 1/13th share for R450
000 in a Zebula Private Lodge - a return of +/- 15% per annum. Not bad if you
compare this to the residential rental market currently only earning between 5%
and 7% per annum.
The main reasons for this high return on a relatively small capital outlay are:
More and more South Africans are putting a premium on quality
get-aways.
International tourists are flocking to South Africa, many of
them looking for luxury accommodation outside of the hotel environment.
People are willing to pay a premium for surroundings such as
the bushveld, Big 5 game reserves and cliff-top golf estates.
Holiday goers are normally willing to spend more on the luxury
accommodation, especially during peak seasons.
The service level received by people renting such a property is
always of the highest quality and includes cleaning, catering, game drives,
golf, etc.
When purchasing a fractional ownership share, the owner of such a share will
enjoy the full ownership and usage of the property for the fraction of the year
equal to his percentage shareholding in the property. Therefore should such a
shareholder prefer not to make use of some or even all of his allocated weeks,
this may be rented out by the shareholder directly, through a rental agent
and/or through Syndic8 Solutions. The shareholder can thus enjoy one of the
largest benefits of owning a luxury property - the exceptional rental return.
Syndic8 Solutions
Syndic8 Solutions has over the past three years firmly proven itself to be one
of the strongest and certainly the most recognised brand in the luxury property
market. This position is constantly re-enforced by the delivery of high quality
products to fractional ownership investors. The company is one of the only
companies in the industry that offers a full turn-key service ranging from the
physical property construction, legal structuring, marketing and selling,
property management, re-sale marketing to rental management and an impressive
usage exchange program. The company's brand strength has resulted in a situation
where the majority of the new business sales are from repeat customers and also
sales emanating from recommendations by existing clients.
Two of the most attractive services for investors is certainly the massive
potential for rental income earned on luxury properties as well as the added
flexibility for usage added by the usage exchange programme.
Week exchange
Syndic8 Solutions also offers the facility whereby shareholders can exchange
their weeks for usage of other great destinations. The constant expansion of the
Syndic8 Solutions product range, together with inventive usage rosters have
given shareholders the added value of visiting different luxury destinations all
over the country. Although the capital growth and rental returns will still be
linked to the specific property the shareholder has selected, he/she can now
also enjoy a range of other premier destinations, including:
Pinnacle Point
Prince's Grant Golf and Country Estate
Vaal de Grace Nick Price Estate
Pecanwood Estate
Zebula Country Club
Club Mykonos
Indlovu River Lodge
Re-Sales
Although share valuations are directly linked to the value of the underlying
property, as with all other investments future valuations will no doubt be
influenced by the liquidity of an investor's share in a property. To ensure
liquidity of shares Syndic8 Solutions also offers a well marketed Re-Sale
service to shareholders wishing to realise capital gains by selling their shares
in a property.
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