Fractional Ownership South Africa - Segmentation of the Vacation Ownership Market
Posted: Tuesday, February 05, 2008
by Lulie Swanepoel
Altersage
Do you understand the difference between Classic fractions, High End Fractions and Private Residence Clubs?
Don't fret, most people don't!
On a recent survey conducted in South Africa, it appeared that although the South African vacation investment
community is just beginning to understand the differences between timeshare and classic fractions. There is
still a large portion of investors that still needs to be educated on the other
various co-ownership and usage vehicles available in the market, particularly
around high end fractions and Private Residence Clubs (PRC's).
As you read this there are some truly fantastic products available in the
market coming from all 3 stables of vacation ownership. There are opportunities
that suit not only your pocket, but usage requirements too, whatever the level
of luxury you seek.
Here is the quick guide to the three fractional ownership and
usage structures:
Classic Fractional Ownership
The property of Classic Fractional Ownership is
shared ownership and exclusive usage of luxury holiday property in high demand
estates and areas. Fundamentally you purchase a share in a company that owns
and manages the property (the asset) like a luxury hotel or guest house.
Your share value is directly linked to the value of
the actual property, so you are likely to see capital appreciation on your
investment, as well as the FREE holiday time allocated to you forever through
the usage roster.
Unlike timeshare where you only own the use of time
in a property or exchange program, Classic and High End fractions offer you
shared ownership underpinned by the value of the property plus adequate usage. And
in many cases an exchange program benefits and income generating rental
programs are included in the purchase price.
Private Residence Clubs
With Private Residence Clubs you're offered a
membership purchase into a resort environment, usually five or six stars, which
is likely to include concierge services, exclusive access in a luxury boat, plane
or helicopter, as well as access to the various amenities of the resort.
Exchange with similar resorts around the world is typically included in your
purchase.
PRC's main motive is purchasing into a five star
lifestyle, followed by the secondary reason being that of an investment
opportunity.
High End
Fractions
Although close to classic fractions, High End
Fractions offers a slightly enhanced structure. With High End Fractions you
purchase into one or a portfolio of properties, allocated yet flexible usage
with added luxury hospitality services such as on-line reservations, private concierge as well as inter-portfolio and international exchange.
Upon review of the various structures, most of the companies
promoting fractions and PRC's all have one thing in common: "You are only
purchasing the time you require in one or more luxury properties. The
price tag is determined by the flexibility of use as well as the additional
hospitality services allocated to your share and the usage experience."
About
the Author:
FractionalOwnership.co.za
offers you an array of spectacular Classic,
High End Fractions and Private Residences, and would welcome any
further questions you might have with regards to fractional ownership.
Yes, I would like to know more, as I want to invest in Classic Fractional Ownership.I would also wanna know about the costs thereofEdith, simply click through to Fractional Ownership's website and get in contact with one of their consultants who would be able to answer any questions you might have.
Yes, I would like to know more, as I want to invest in Classic Fractional Ownership.I would also wanna know about the costs thereof,especially in South Africa