Projects

Offices - Shops - Hotels - Restaurants

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 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 to the so far lowest point of +/-11%. 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.

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 8 and 11%, and in some cases up to 15%.

In the branch of private properties the increasing was in 2004 +/- 30%.

For the year 2005: 22,7%, for 2006 15,2% and from 1 October to 31 December 2007: 12,4%. The expected nominal house price growth for the year 2008 is 7%. Over the first 3 months of the year 2008 the growth was 9,5%.

So, if you like to invest in S.A. do it in the right time!!!!!!!!!!!!!!!!!!!!!!

01-05-08

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!

Examples of 2007:

The prices below include an 8% fully tradable share in the property, fully furnished

and equipped, which allows 2 x 2 weeks or 4 x 1 weeks usage per year – depending on the property.

Luxury Property Ownership In Cape Town Made Affordable

Century City - Villa Italia, R95 000

2 Bed / 2 Bath Luxury Apartment

A city within a city at the heart of the greater Cape

Town, combining office, residential, retail and leisure

opportunities that respond to the lifestyle demands and

priorities of today’s society.

Green Point - York Mews, R125 000

2 Bed Modern Upmarket Apartment

A stone’s throw away from the V&A Waterfront and

within walking distance from the CBD and Atlantic.

De Waterkant - Dockside, R150 000

1 Bed Luxury Apartment

The perfect location between the V&A Waterfront,

CTICC and CBD with spectacular harbour and city views.

Croydon Vineyard Estate, R295 000

3 Bed en-suite Luxury Home on Large Stand

The heart of the estate lies in the vineyards that

surround every home. Homeowners are also co-owners,

with an equal share, in the estate’s state-of-the-art

winery and the vineyards amongst which they live.

For more information on our future projects, as well as the most exclusive fractional ownership opportunity available in SA, please contact us by e mail.: mega.bennekom@wxs.nl

18/04/08