Real Estate Investor Magazine South Africa May 2014 | Page 44

STRATEGIES

SHIRLEY LE GUERN

Successful business model
Sectional title hotel properties offer a popular offshore investment option

U

nlike the quick, high risk returns of the
stock market, property is long term and
low risk. On average, the current return
on investment is around 7% – still above this
year’s envisaged inf lation rate of 6.3%. But buyto-let investments come w it h t he burden of
being a landlord and the challenges of short hold
tenancies, non-payment of rent, maintenance,
levies and more.
Most property investment is confined to residential
with venturing into the commercial property sector
left to high net worth individuals and property funds.
Access to opportunities in the hotel sector, for example,
seems to be out of reach.
Not necessarily, says Mark Taylor, chief executive
of the élan Property Group which recently unveiled
exciting investment opportunities in sectional title self
catering villas in three resorts - Franschhoek Valley
Wellness Resort in the Western Cape, Praia do Cossa
in Mozambique and Corail de Plage in Mauritius.

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May 2014 SA Real Estate Investor

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“Investing in hotel suites is an excellent and profitable
alternative to the traditional buy-to-let investment,