For many a family the holiday home is where the long lasting memories are created and is a privilege enjoyed by the fortunate few. Yet in today’s economic climate, it is becoming increasingly more difficult to retain these lifestyle assets given the holding costs of what is invariably a heavily underutilised asset. Hence the market, both locally and abroad, has seen a strong growth of shared ownership investment models that afford the benefits of owning a holiday home but at a fraction of the cost, both upfront and holding.
Over the last 4-5 years HMA has facilitated around R40m of shared ownership investments in SA, across many leading golf estates such as Zebula, Pinnacle Point, Arabelle, Prince’s Grant, Elements, Zimbali and Pecanwood. This experience has served HMA well in understanding what holiday home investors are looking for and how these needs are best met.
Key considerations are;
- Accessibility – a holiday home needs to be within an easy commute of your primary home. This optimises usage of the home from a convenience perspective and hence leisure time return. Coupled with convenience is cost, if the family has to all fly down to the Western Cape, then hire a car and so forth to enjoy a long weekend at the holiday home it becomes a very expensive exercise compared to for example a 2 hour drive to the Waterberg.
- Quality – no one that can afford a holiday home, shared or outright ownership, wants to holiday in a house and / or resort that is not of high quality. It is essential for the holiday home to have those quality comforts, coupled with the overall lifestyle experience.
- Security of ownership – unlike for example timeshare, with shared ownership you hold a tradable equity / share in the asset. The value of this share marries the asset’s value trend. Even in a declining property market, the share still equates to tangible value. That said and taking into consideration the market trend of the past few years, HMA is of the opinion that now is a good time to invest.
- Transparency – coupled with security of ownership, the shared ownership investment model has to be one of transparency that protects the investor’s wealth. The HMA model is simple and transparent - ownership of shares in a (Pty) Ltd company that solely owns the property and has no associated liability. It is vital that the investment vehicle in which the shares are owned has zero gearing, borrowings or liability and its auditors report directly to each and every shareholder.
- Convenience – owning and maintaining a holiday can become a real hassle particularly when managed from a distance. Given the significant cost savings of shared ownership, there is adequate motivation to rather outsource this function to HMA / an experienced operator.
Why Elements Private Golf Reserve?
HMA has chosen to focus on Elements with its current shared ownership product offering for the following reasons;
- Accessibility (within 2 hours of JHB)
- Affordability – although it is established with championship golf course, club house, game and the likes it is still in the growth phase and offers excellent value for money from an investment perspective. The shared ownership investment options HMA is offering at Elements are all in fully built, complete homes / lodges (not off plan) and at extremely competitive prices.
- Lifestyle – a pristine golf and bushveld experience in a non-commercialised yet luxury environment.
Please contact us
By telephone at: +27 83 309 0760
By email: firstname.lastname@example.org
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ELEMENTS Private Golf Reserve