Somerset Links Apartments are situated in the picturesque town of Somerset West. Real Estate in the Helderberg area of the Western Cape of South Africa come surrounded by mountain ranges, a scenic coastline and endless vineyards.
Why opt for a South African real estate investment in the Somerset Links Apartments Development?
- Beautiful and modern architect designed apartment complex.
- Large landscaped gardens plus private gardens for ground floor apartments.
- Water features with pathways throughout landscaped gardens.
- Day-care child centre.
- "Kick about" playing field
- Private gymnasium for residents only.
- Heated swimming pool
- Access controlled entrances to secure complex.
- Secure basement parking for each apartment with direct access to lobbies.
- Elevators for Penthouse and surrounding apartments
- The Vodacom golf driving range on your doorstep
- 5 minutes walking distance from Somerset Mall shopping centre
- 2 minutes drive to Strand 18 hole golf course
- 3 minutes drive to the safe, warm bathing beaches of the Strand.
- 20 minutes drive to Cape Town International Airport
- 30 minutes drive to Cape Town City.
Rental Pool Option Creates A Versatile Property Investment Opportunity
If you are an investor not intending to occupy an apartment, but requiring a better return on your South African property investment than simply putting a tenant in the unit, we have an exciting option worth consideration. The developers of Somerset Links Apartments have entered into a contract with Urban Hip Hotels (Pty)Ltd to manage the rental pool scheme at the complex.
The purchaser of an apartment not planning to occupy it, can enter into a rental pool contract with Urban Hip Hotels. This will allow Urban Hip Hotels to rent rooms to paying guests on similar terms and conditions as a conventional luxury hotel.
In addition to the basic services offered by the Body Corporate of Somerset West's Somerset Links Apartments, Urban Hip will provide to the rental pool guest a reservations office, a hotel reception, a concierge service, hotel porters, secure parking and an on site hotel manager to whom any queries may be directed.
The hotel bedroom will be serviced daily; a clean change of linen, branded guest supplies in the bathroom, and guest stationary for the convenience of the customer will be supplied.
As the marketing of the rental pool units will be the cornerstone to the success of the scheme, the occupancy and the rate achieved in letting the apartments will be the major determining factor to success.
Extensive research by Urban Hip Hotels has shown that there is a demand for accommodation in the Western Cape's Somerset West on a short stay and a long stay basis. Urban Hip Hotels will undertake to secure this business for the rental pool scheme through advertising, marketing, sales and promotions of the property to the target market, namely the business traveler conducting business in the Cape Town City bowl as well as those local and international guests attending meetings and conferences in the Helderberg / Stellenbosch / Cape Town areas.
The management team at Urban Hip Hotels have over fifty years combined experience in the hotel industry both locally and internationally. A highly experienced sales and marketing team consisting of 24 staff members based in Johannesburg, Cape Town, Durban, London and Milan will assist the management team.
A state of the art reservations office, linked to Global Distribution Systems, used by international tour operators, travel agents, airlines, car rental companies and corporate clients, will ensure an effective marketing and administrative system.
Financial Considerations For The Real Estate Investor At Somerset Links Apartments
Somerset Links Apartments Furniture and Fittings
Studio: R86 144
1 Bed 1 Bathroom: R98 965
2 Bed 1 Bathroom (second room study): R107 359
2 Bed 2 Bathroom: R111 784
2 Bed 2 Bathroom (duplex): R125 497
Participation Fee
An annual participation fee of R3500 (exclusive of VAT) is charged per apartment and is due on signature of contract.
Levies At Somerset Links Apartments
An individual levy will be charged to each investor and this will vary according to the size and type of apartment.
Rental Pool Participation Interest
Of all revenue generated by the letting of rental pool rooms by Urban Hip, 80% will go to the rental pool for distribution to rental pool participants. This will be distributed according to the floor area of the particular apartments that form part of the rental pool scheme.
Urban Hip Hotels will retain 20% of revenue which will cover all marketing, sales, reservation and group operating costs. Please note that Urban Hip earns no income, management fees etc. until they generate revenue for the investors in this prime example of South African real estate.
Rates
The advertised rate (2007) for a one bedroom Somerset Links apartment has been set at R1450 per night and a two bedroom apartment at R1650 per night, inclusive of VAT. Note, the current average published rate in a 5 Star Cape Town Hotel is R2000 to R3000 per room per night.
Financial Returns
At 50% occupancy a 6,3% return on investment is expected.
At 65% occupancy a 7,8% return on investment is expected.
At 75% occupancy a 13,8% return on investment is expected.
Capital growth will most likely exceed inflation handsomely over time, but for the next few years Byron-Yeats Properties expect capital growth of investment to be as follows:
2007/2008: 8%
2008/2009: 11%
2009/2010: 13%
2010/2011: 14%
Advantages of the Somerset Links Apartments Rental Pool
The financial advantages of the rental pool is substantial. As the demand for the destination increases, so the occupancy will increase, earning greater returns for the owner. Urban Hip Hotels, through their marketing efforts will ensure that the rate charged is maximized which will also add to the revenue of the scheme. Minimum rates will be increased each year to adjust for inflation, ensuring the value of the rental pool units are maintained at market related levels.
As Urban Hip management have over fifty years experience in the management of hotels, the rental pool units will always be maintained at world class, thus sustaining the value of the units throughout the duration of the rental pool contract.
Keep in mind that an owner can use the apartment for one month a year for holiday etc. During that time your Somerset Links Apartment will not form part of the rental pool system.
Contact persons:
Wim van der Walt 082 3772197
wim@byron-yeatsproperties.com
Markus van der Walt 0837680910
markus@byron-yeatsproperties.com
Byron-YeatsProperties.com
