|
As in the Netherlands and other
European countries, there is a lot of ongoing building construction in Cape Town. Even
here, project developments and turn-key realty constructions are routing both
for investors and users.
When you watch and listen to discussions lead by experts connected with
realty market development, you can hear a lot of faintly familiar comments.
State of development is highly discussed at the political level.
"Do we want ancient monumental houses with historical background to
disappear, so that there is a place for a new office building or a
hotel?".
"Are we going to let developers and owners to divide existing realties
(a building or parcel) so that they can profit from this?".
"Are we going to give up the green belt or are we going to set the range
of a build-up area planned?".
Return of interest percentage, solvency, expenditure structure, productivity
development and many others are naturally most concerned in financial spheres.
Even in South African newspapers appear graphs monitoring mortgage interest
development within several past years. We have to remark that a content of
information naturally differs. We identified a peak of 12 or 13 percent
interest rate in the Netherlands,
but considering South
Africa we can
speak of the peak in the year 1998 when it was 24%, and than it dropped. What
is in common, is the fact that no expert will venture to estimate what the
height of allowance will be in 6 months, and each of them makes their own
estimates in accordance to their own belief.
Interest Rate:
Prime interest rate history in South Africa
South African Home Loans Interest Rates since 1999
|
|
|
ABSA HOUSE PRICE INDICES
DECEMBER 2009
-
Absa House Price Indices (nominal, 2000 = 100)
Maand houses
80-140 m2 141-220 m2 221-400 m2
2009 - 2010 -
2011 2009 – 2010 -
2011 2009 – 2010 – 2011
Jan 341,6 364,2
387,2
374,8 383,4 391,4 374,0 392,6
406,3
Feb 337,2 377,8
393,9
372,3 387,5 393,2 372,7 395,9
410,3
|
Discussion in construction spheres and among building companies does not very
much differ from the situation we have here. However, it is possible to
discuss about their own building system, about usage of materials that do not
always correspond to those we are use to use, about different working moral
and about employee remuneration markedly differing in various spheres.
From the discussions we have had with range of Cape Town realty
agencies, the results are that the amount of Europeans investing in the
territory is rapidly increasing. Being in touch with a project developer and
real estate mediator we get to know that citizens of the Netherlands, Germany, Switzerland and the Great Britain
invest in here. Resources for business sphere realises an average profit
margin ranging between 5 and 11%, and in some cases up to 15%.
01-07-2011
FRACTIONAL
OWNERSHIP,………….. WHAT IS THAT?
INTRODUCTION
The latest trend is that
property investors and holiday home owners are moving away from solely owning
one single leisure property – for obvious reasons…
Your Options are:
·
Invest R1.5 mil in a single
leisure property. You only utilize this property for a few (max 4) weeks per
year, but still have the sole burden & cost of maintenance, as well as
monthly expenses all year round.
·
Invest only R250 000 in a
Fractional Ownership Property worth double (valued at R3 mil), still giving
you the 4 weeks usage you would normally require, but without the sole burden
& costs – these are shared amongst all shareholders.
·
Invest R1.5 mil in 6 various locations
(each valued at R3 mil) at R250 000 each for the same price as one single
property (R1,5 million), giving you the pleasure & variety of 6 different
destinations. You increase the total value of your investment to R18 million
– you’ve gained the benefit 12 times, and diversified your portfolio.
Whole Ownership vs Fractional Ownership? The choice is yours…!
We are so confident in
our Fractional Ownership Portfolio; we will always retain a share in each
property / project to ensure we remain an active partner together with all
shareholders, committing to a long-term relationship.
The Western Cape, and
more in particular Cape Town, has shown a remarkable capital growth in the
property market of at least 50% over the last 2 to 3 years, or approx 100% growth
over 5 years. This growth is set to continue in years to come with the
preparation of the 2010 World Cup, and beyond.
Property Investment in
the Cape Town region is the best possible investment
option available, and Fractional Ownership the smartest way to structure your
investment…
Minimum Outlay – Maximum Return?
IS IT SIMILAR TO TIME SHARE?
NO!
The only
similarity is that more than one party is involved in the property… However
the advantages of Fractional Ownership over timeshare are distinct and far
more superior.
Timeshare buys you time –
Fractional Ownership buys you an appreciating asset.
With timeshare you never own the
property or become a shareholder.
Property value increases and so
does your shares within Fractional Ownership.
Fractional Ownership unlike timeshare is aimed at a more up-market
sector.
Timeshare decreases in value
whilst Fractional Ownership accumulates capital growth.
Fractional Ownership shares can be sold at any time – no contractual
period.
With timeshare demand is higher
than supply – availability is a serious concern.
Timeshare includes brokerage
commissions of up to 60%. Fractional Ownership
attracts standard sales agents’ commission
of approx 7%, but like with any
property transaction is paid by the seller.
More for Less...
The
latest trend worldwide is that property investors and holiday home
owners are moving away
from
solely owning single leisure properties, and rather consider the winning
formula of fractional
ownership.
This offers more leisure locations for the same amount invested, or less,
without the sole
burden of
costs and maintenance, as these are shared amongst investors. Capital
growth in
leisure locations is also higher as result of demand. Property investment in
the Cape Town
region is
the best possible investment option available in South
Africa, and fractional
ownership
the
smartest way to structure your investment.
Minimum
Outlay – Maximum Return!
|