Fractional Ownership in SA has taken off

Source: Fractional Ownership

Take a break, at a fraction of the cost

Hospitality properties along the Garden Route allow for good investment options, writes Thumeshni Mudeliar. A beautiful fractional offering set on the Zorgvliet Wine Estate, Stellenbosch, and part of the Zorgvliet Private Residence Club. Fractions are priced from R300 000 for 28 days per year, excluding any tax payable.

Fractional ownership in SA has taken off in a big way.  The industry has grown and developed to a level where even international brands and marketers of fractional ownership are keen to bring their business into Southern Africa.  Dirk Wilson of fractionalownership.co.za, a web resource specialising in information, products and services related to fractional ownership says that SA’s leisure resort developers are taking the lead from the tried and tested multi-product vacation ownership model developed in the US.

“Many local resorts themselves are now releasing a bouquet of shared vacation ownership opportunities into the market, such as fractional ownership, private residence clubs (PRC’s) and timeshare, to meet the needs of consumers’ pockets as well as service expectations.”

Fractional ownership simply explained on fractionalownership.co.za is, “‘part’ or ‘shared’ ownership & usage of a professionally managed luxury leisure asset, such as a holiday home, a villa in a vacation resort or even a network of luxury boats.”

A fractional share affords one ownership and usage rights over a product.

In this economic downturn not everybody is able to afford their own holiday home.  Beside the monthly bond repayment, the holiday home needs to be regularly maintained and cared for.  With the concept of fractional ownership, let the partner hospitality company or hotel operator take care of such functions while you get on with enjoying a relaxing time at an exclusive venue. Wilson says that consumers are realising the financial benefit of fractional over whole ownership, demanding more vacation ownership options at the resort of their choice.  He strongly believes the formation of the Vacation Ownership Association of SA (VOASA), will help consumers become more informed about the different shared ownership products available on the market and how they vary. 

If there is a better understanding on what vacation products are available such as timeshare, fractional ownership and PRC’s, and how each works, this will alleviate confusion, with more people encouraged to participate in these vacation options.

SA is attracting a number of top vacation ownership exchange brands as well. Wilson says: “  Interval International has just been awarded the Southern Sun exchange business and is moving into SA alongside The Registry Collection and Platinum destinations.”

The international brands are looking to include SA’s top luxurious vacation properties within their portfolios.  The South African fractional owner will no doubt benefit from exchange opportunities at other high-end fractional residents worldwide.

Likewise, fractional owners in the UK or US can experience more South African destinations through this exchange network.

Exciting opportunities in the pipeline include high-end service companies such as Dubai’s Preferred Hotel Group looking to expand services with alliances in Southern Africa to benefit their premium members.   SA, says Wilson, could also expect global resort destinations to open here within the next two to five years. 

Wilson says:” Presuming the 2010 Soccer World Cup is a success; from 2011 onwards we should see more people purchasing fractional ownership and PRC’s in Southern Africa, since they will be purchasing their shares in rand, not dollars or pounds. So instead of buying 21 days in a PRC in Dubai, Paris or London, an astute investor can buy into a resort of similar if not higher quality here in South Africa – such as Pezula, Fairmont Zimbali, Zorgvliet and L’Ermitage, all for a fraction of the cost of those elsewhere, yet still benefit from a value for value global exchange network of residences.”

CONTACT:

Dirk Wilson 072 591 8582

Office 021 556 5064