The ability to share in the ownership of exclusive property, has to date been
nothing but a mere mirage to all but a very small number of privileged
investors.
The continuing increase of prices in this top sector has made it nearly
impossible to join the party, especially if one initially missed the bus. Take
for example that a quality stand at a top golf estate like Pinnacle Point can
easily cost an investor between R2 million and R3 million. Add to that the high
building costs that always increases with the aesthetics of the area
(elevations, water, building regulations, environmental impact, etc.) and most
buyers are completely priced out of the market. This trend of increasing prices
will undoubtedly continue especially now that more and more South Africans are
starting to share in the countries riches. Demand will thus stay high as
discerning investors will always be prepared to pay for the luxury and security
of top quality private estates. Luckily for many and investor the status quo of
who is able to invest in such up market property is busy changing.
Welcome to the world of Fractional Ownership or Property Syndication. This
unique form of property ownership is by far the most effective, easiest and
lowest risk way to invest in luxury property. Fractional ownership has long been
the fastest growing sector in the American luxury property market and South
African buyers are quickly catching on. The tremendous advantages of the
fractional, rather than whole ownership can clearly be seen by its popularity on
prime Estates like Pinnacle Point, Zebula, Prince's Grant and many others.
Fractional Ownership can be described as the joint ownership of an asset.
Usually the asset is of high monetary value and in this case specifically high
quality property. Usage of the property is shared amongst the owners and all
associated costs are also jointly carried, thereby lowering the cost for each
owner. Ownership is in the form of a percentage shareholding in a private
company, whilst the company in turns owns the property. Ownership gives the
shareholder the right of use for a specified number of weeks per year, depending
on your percentage shareholding. In most cases syndications provides an
opportunity for a thirteenth share, or multiple thereof, in the specific
property and thus gives the investor four weeks usage per annum on a rotational
basis.
Before investing in any property, prospective shareholders should ask themselves
the following:
Why luxury property?
Over the last two decades leisure property has constantly outperformed
traditional residential property by a healthy margin. Leisure property not only
offers above average capital growth, but also excellent rental returns combined
with a self usage benefit.
Why fractional ownership?
Shareholders are the owners of the property and have complete control over all
aspects of the company and the property it owns. All the necessary structures
for both the utilisation as well as the management of the property are put in
place by Syndic8 Solutions - the specialists in the Fractional Ownership.
Benefits of fractional ownership include:
Any increase in the value of the property accrues to the shareholders
Better value for money
Affordable ownership in exclusive destinations
The most exclusive addresses in South Africa normally increase in value
faster than other residential properties
Ability to rent out your un-utilised weeks
Lower maintenance costs as it is shared between all shareholders
Less security concerns because of higher occupancy and high estate
security
Why Syndic8 Solutions?
With more than 30 years experience in the investment and property markets,
Syndic8 Solutions provides customers with a practical solution to investing in
the high-end property market. The company prides itself on its dedication to a
"no compromise approach to client care" and an un-wavering commitment to high
ethical standards & values.
Syndic8 Solutions, as a full subsidiary of Exord Holdings (Pty) Ltd and a proud
member of the South African Association of Fractional Intermediaries (SAAFI),
offers clients complete piece of mind as a life long partner in their fractional
ownership assets.
It is Syndic 8 Solutions' passion to bring top quality properties to the market
at the right prices. This is your opportunity to buy into life.
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