Fractional Ownership & Rental Returns

Fractional Ownership & Rental Returns

Private Property South Africa
Syndic8 Solutions

Fractional Ownership & Luxury Property Rental

Not only does the capital growth on luxury properties far exceed that of most

asset classes, but it is also certainly worth considering the lucrative and ever

increasing rental returns that such a property can generate. Take into

consideration that the daily rental income earned by a four bedroom house on a

luxury estate can easily range between R3000 and R5000. With occupancy rates of

65% comfortably achieved on a premier estate, such as Zebula Country Club,

rental returns can give an investor - who has purchased a 1/13th share for R450

000 in a Zebula Private Lodge - a return of +/- 15% per annum. Not bad if you

compare this to the residential rental market currently only earning between 5%

and 7% per annum.

The main reasons for this high return on a relatively small capital outlay are:

  • More and more South Africans are putting a premium on quality


  • International tourists are flocking to South Africa, many of

    them looking for luxury accommodation outside of the hotel environment.

  • People are willing to pay a premium for surroundings such as

    the bushveld, Big 5 game reserves and cliff-top golf estates.

  • Holiday goers are normally willing to spend more on the luxury

    accommodation, especially during peak seasons.

  • The service level received by people renting such a property is

    always of the highest quality and includes cleaning, catering, game drives,

    golf, etc.

When purchasing a fractional ownership share, the owner of such a share will

enjoy the full ownership and usage of the property for the fraction of the year

equal to his percentage shareholding in the property. Therefore should such a

shareholder prefer not to make use of some or even all of his allocated weeks,

this may be rented out by the shareholder directly, through a rental agent

and/or through Syndic8 Solutions. The shareholder can thus enjoy one of the

largest benefits of owning a luxury property - the exceptional rental return.

Syndic8 Solutions

Syndic8 Solutions has over the past three years firmly proven itself to be one

of the strongest and certainly the most recognised brand in the luxury property

market. This position is constantly re-enforced by the delivery of high quality

products to fractional ownership investors. The company is one of the only

companies in the industry that offers a full turn-key service ranging from the

physical property construction, legal structuring, marketing and selling,

property management, re-sale marketing to rental management and an impressive

usage exchange program. The company's brand strength has resulted in a situation

where the majority of the new business sales are from repeat customers and also

sales emanating from recommendations by existing clients.

Two of the most attractive services for investors is certainly the massive

potential for rental income earned on luxury properties as well as the added

flexibility for usage added by the usage exchange programme.

Week exchange

Syndic8 Solutions also offers the facility whereby shareholders can exchange

their weeks for usage of other great destinations. The constant expansion of the

Syndic8 Solutions product range, together with inventive usage rosters have

given shareholders the added value of visiting different luxury destinations all

over the country. Although the capital growth and rental returns will still be

linked to the specific property the shareholder has selected, he/she can now

also enjoy a range of other premier destinations, including:

  • Pinnacle Point

  • Prince's Grant Golf and Country Estate

  • Vaal de Grace Nick Price Estate

  • Pecanwood Estate

  • Zebula Country Club

  • Club Mykonos

  • Indlovu River Lodge


Although share valuations are directly linked to the value of the underlying

property, as with all other investments future valuations will no doubt be

influenced by the liquidity of an investor's share in a property. To ensure

liquidity of shares Syndic8 Solutions also offers a well marketed Re-Sale

service to shareholders wishing to realise capital gains by selling their shares

in a property.

Click here for more investment opportunities in Fractional Properties


Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Commercial property market insights - It's not all doom and gloom out there
The commercial property market has the potential to rebound depending on a number of factors.
Interest rate disappoints, but South Africans will buy property this festive season, says Seeff
Despite the South Africa Reserve Bank's decision to keep the interest rate at 3,5% South Africans are predicted to still purchase property this festive.
Stable interest rates lead to housing market boom
There's a huge spike in homebuyers in South Africa.
What it means to buy a property in distress
Everything you need to know about the process of purchasing a distressed property.