Dirk Wilson, Founder www.fractionalownership.co.za
I believe that South Africa and Australia share many similarities in relation to the aspirational influences that lead savvy investors to the fractional ownership model. I welcome the association that we have developed with Ric King and his team at Lifestyle Fractions and look forward to a mutually rewarding relationship for the future.
Similarities between South Africa and Australia
Legislation and governance in each country aside, I see many similarities between the average Australian and South African fractional ownership buyer. The similarities are due to the sheer size and landscape diversity within each of the countries. South Africans tend to take mini breaks within South Africa, and from what I hear the Aussies are no different. People seeking a one week holiday will naturally be more inclined to get to their destination within one travel day, especially those with families in tow, people living in-land will be attracted to the coastline, and people living in the coastal cities may seek other more remote coastal locations or destinations in-land, such as wine regions and tranquil towns and villages within a reasonable travel time.
As an example; Over the past 5 years here In South Africa we are have seen this trend unfold whereby people living in the Johannesburg and surrounding nodes are buying fractions in game farms, Mozambique and KZN north coast – these destinations can all be reached by car within 3 to 8 hours (No flying and car hire required). People living in Cape Town and surrounds are looking at fractional property up the garden route, wine estates and West coast regions, once again all within 8 hours drive door to door.
Another similarity between the two markets in the amount of South African’s living in Australia, a fractional purchase ‘back home’ allows these South Africans to purchase their share in a managed holiday home in South Africa, thus removing the full risk and burden of 100% ownership, at the same time open up the opportunity to come back to SA on a hassle free holiday, visit family or perhaps both combined. Vice versa also applies - South Africans can invest in fractional property in Australia in order visit family and friends that have emigrated or their intentions might be to invest in the Australian property market.
It all boils down to the lifestyle and investment objectives of the buyer, the catalyst that will open up the trade between the two markets will be the exchange providers, these companies will bring the element of flexibility to the purchase, simply put – owners will have the option to visit the residence they own shares in, or exchange their time for another global destination that year.
