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Traditionally 12 fractions implied 4 unused weeks which was then reserved or used as maintenance weeks, however this is not always as functional and maintenance is done as and when required. Is fractional ownership timeshare Fractional ownership shares some attributes with timeshare in that multiple people use the same property with a defined usage agreement, that s where the similarity ends. holiday in wales

Fractional ownership is underpinned by property ownership, it is a real right, either in an undivided share of the property, or through a share in a private company which owns the property. Timeshare is a right of use with no property ownership. Who buys into fractional ownership With the industry still in its formative phases it wouldn t be accurate to define the exact profile of a typical buyer, however we have found a number of attributes that may identify the most likely buyer. holiday wales

People with an established primary residence Aspiring wealthy Financially educated 30 Plus age group Decision is driven by the husband in families Multiracial profile Finance of fractionals Finance of fractional ownership is still a grey area as the commercial banks in South Africa are still assessing the potential, the demographics and the most suitable structures. Some providers offer a structure where the Private Residence in question is bonded and the different shareholders pay their respective portions. In the instance of Shareblock Companies this is however much more difficult. cottage holiday in wales

Finance offered through some of the niche banks is more reliant on the profile of the buyer, where the overall position is assessed and the sharecertificate is but one of a few assets in the client s portfolio. caravan holiday in wales

Structure of ownership A host of different structures are currently on offer all offering property ownership, ranging from undivided shares in the property direct, shares in a private company that owns the property, shares in a private company that owns a number of Private Residences, or shares in a Share block company. The share block being the most onerous structure for the fractional company, but offering the best protection to its investors. camping holiday wales

Exchange programs Two schools of thought exist on this aspect. The purists who believe that fractional ownership is a simulation of owning your own private holiday home, customised to your needs and reflecting your own personal touch. (This is where the extreme value added service of having your own family pictures hung on your visit applies) These clients want absolute no resemblance to timeshare, with no other people thus occupying their residence, and no desire to use someone else s house. accommodation holiday wales

The inverse group want the best of both worlds. Ownership of a specific residence, with the knowledge and expectation of its growth and scarcity value, combined with the flexibility to use an alternative as and when needed. holiday last minute wales

We initially anticipated that the market will predominantly be purists, but however that was proven wrong! The majority of clients and interested parties would like an exchange program to be linked to the product. catering holiday self wales

Concept structure The fractional ownership market in South Africa has 3 distinct components: Product identification conceptualisation and development. Intermediary marketing and sales Operational management It is not necessary to be active in all three stages to participate in the market, only true vertically integrated companies would do so. Players in the market Taking the structure mentioned above into account, there is approximately 13 to 15 vertically integrated companies active in SA. The biggest portion of the market however lies in the segment where developers have identified this as an alternative market segment and they will now attempt to sell a portion of their development into this market. holiday wales walking

Value determinants The price of a fraction is directly determined by the value of the underlying property, which is in turn influenced by location, destination, scarcity or availability and quality of finishes. The price range in the US is from $100 000 to $700 000 or more, whereas the current range in SA is from R150 000 in the Kalahari to R895 000 on Simola, and R1000 000 in some of the other structures. family holiday wales

Our product range stretches from R150 000 for a 2 week Kalahari fractional to a R480 000 4 week fractional on Zimbali. The average price being R275 000. The South African market is estimated to be between R4, 5B and R10B. Destinations Fractionals are ideal for destinations that are well known, highly sought after, expensive and typically have an extended seasonality to it. In other words hidden gems that have limited usable weather are not functional. holiday riding wales

Destination categories include: Beaches and shores Mountains and vines Golfing Wildlife Metropolitan Benefits of fractional ownership 1. You only pay for the portion you use 2. A structured way of sharing a property with a defined exit method 3. The management and maintenance is done on your behalf 4. The investment is underpinned by real property 5. The investment could increase substantially if correctly acquired adventure holiday wales

6. Could create balance in a well structured portfolio. 7. Is affordable 8. Puts the relaxation back into the holiday break. 9. Creates a structured or forced holiday break with yourself Regulation: SAAFI With the inception of this new industry it is foreseeable that if it takes off as we expect it to, it will attract numerous new entrants to become active players in the 3 aspects of the market. With this in mind some of the early entrants to the market initiated the concept of a self regulatory body to guide the players and to ensure a good code of conduct. holiday park south wales

As such SAAFI, the South African Association of Fractional Intermediaries was conceived. SAAFI s main aim is to promote the industry and to attempt to be the voluntary watchdog to ensure good conduct. Objectives The objectives for which the Association was established are:- to promote and protect the interest of fractional ownership companies and investors in the provision of legal well-structured fractional ownership companies and the management and/or secretarial services associated therewith; cottage holiday wales

to provide a forum for members to review and promote matters of common interest; to provide guidelines and a code of conduct for fractional ownership companies; to provide an influential lobby for the benefit of members to undertake research into areas where combined technical resources and experience are needed; to develop a strong public image for fractional ownership companies and other similar structured investment vehicles in South Africa; holiday in wales

to provide a point of reference for the amicable settlement of differences between members and to foster and maintain good relations between members. to promote the concept of Fractional Ownership amongst the public enlarge and the investor community specifically Prev Next [ Back ] Fractionalownership.co.za 2006 | Disclaimer | site by quick online.co.za holiday wales

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SAAFI inaugural meeting SAAFI inaugural meeting Fractional Advertising has been appointed to convene the inaugural meeting of SAAFI. The meeting will be held on:- Wednesday 30 August 2006 11am - 3pm President Hotel (Protea) Bantry Bay Cape Town The Agenda is as follows: 1. INTRODUCTION The meeting begins to define the Vision, Mission and Values of the organization, as well as the Strategies and Tools through which these goals will begin to be achieved. cottage holiday in wales

This meeting is intended to outline the strategic measures to be taken by SAAFI towards the delivery of its objectives. In short, the Main Objectives and the Vision inform the Strategic Goals, which additionally inform the Key Performance Areas and Budget. 3. WHO ARE WE SAAFI is a business membership organization for companies that specialize in the marketing/sales/development of fractional ownership of properties both in South Africa and throughout the world. caravan holiday in wales

SAAFI serves as a forum for sharing information and resources that are of value to its members, as well as collectively addressing issues of concern in a proactive manner. 4. AGENDA ITEMS 4.1 Appoint an Acting Chairperson for the interim 3 months 4.2 Appoint an Executive Committee for the interim 3 months 4.3 SAAFI Constitution 4.4 Membership Types and Responsibilities Timeshare Members 4.5 Define the Vision of SAAFI camping holiday wales

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4.6 Define the Mission of SAAFI 4.7 General Objectives of SAAFI Prev Next [ Back ] Fractionalownership.co.za 2006 | Disclaimer | site by quick online.co.za accommodation holiday wales