San Lameer fractions flourish

San Lameer on the KwaZulu-Natal south coast has proven to be one of South Africa's most popular destinations for fractional ownership.

"Our two bedroom and three bedroom units have enjoyed occupancy rates of 73% and 65% respectively during the year to date (2008), both of which include usage by owners as well as rentals via the rental pool," says Werner Geyser, sales consultant for Pam Golding Fractional Ownership.

"In terms of two bedroom units, owners used 60%, ie. 17 days, of their allocated four weeks (ie. 28 days) with the remaining 40% placed in the rental pool - of which 33% of the bed nights were rented out at an average of R1,600 per night providing an income return of R6k. Taking into account an owner's usage of 17 days at this same rate, this translates into a usage value of R27,200.

"In other words you have foregone the income by making use of the villa yourself. However, you would have paid a similar rate to have enjoyed the same amount of holiday time in a similar holiday destination. As a result your return on a two bedroom share (fraction) at a cost of R260k, the usage plus rental represents 13%.

Similarly, regarding the three bedroom units, owners used 50%, ie. 14 days, of their allotted weeks with the remaining 50% placed in the rental pool - with 28% of the bed nights rented out at an average of R2,200 per night. With 14 days' usage affording a usage value of R30,800 and the rental income representing R8,800, the return on a three bedroom share of R299k represents 13,2%.

Geyser says over and above this, over the past three years an average escalation of 15% in the price of the shares at San Lameer has been achieved. As a result, not only is the purchaser minimising his/her holiday expenditure, the leisure asset is also appreciating as the share is underpinned with real property value.

Image 1: Villas at San Lameer.

Image 2: View of a two bedroom villa at San Lameer.

For more information contact Werner Geyser on 021 912 1541 or send an email. Click here to visit the website.

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