www.allafrica.com The newest entry on the international vacation market is the private residence club. These arrangements, often referred to as fractionals, allow investors to buy a share of a house or condominium in a prime vacation spot and have at their disposal a full staff of valets, concierges, and housekeepers, even butlers.

This type of real estate arrangement is for buyers who want the benefits of owning an impressive second home complete with personalised services and located in a very exclusive community but cannot justify the investment because of limited use.

Ann Heystek, CEO of Sotheby's International Realty operated by Lew Geffen Private Estates and Commercial Division, says fractional ownership or residence clubs have sprung up in exclusive, world-class resort destinations worldwide, with locations such as St Thomas, Virgin Islands, Puerta Vallarta and Mexico being most popular. Recently, fractionals in the US have begun appearing in golf-oriented communities such as Hilton Head Island and South Carolina, and popular beach states such as Florida. In almost all US locations, fractionals offer good access to major airports that allow for easy, flexible transportation arrangements.

So, you may ask, what is the cost involved? Prices range from approximately R600000 to R3m in SA for locations at top golf and game destinations. Annual levies range from R2700 to R50000, depending on the location and services offered.

To buy a fractional, investors pay a one-time purchase price and then a yearly upkeep fee that covers all of the expenses associated with property ownership and its use and services.

"Keep in mind that these are truly top-of-the-line homes that would cost you two to five times as much is purchased outright as wholly owned vacation homes," says Heystek, who goes on to say that the resale market is promising. "Because these fractionals are more like upscale real estate than timeshares, their value tends to move with local real estate."

The key to the success of fractionals is their professional management. Internationally, most are operated by well-respected hospitality companies known worldwide for their world-class resorts such as Ritz Carlton and Four Seasons.

Part of the appeal of fractionals is that they are completely hassle free. In addition to having a staff for personalised service at your disposal, at a private residence club you never have to worry about repairs, maintenance or housekeeping. Everything is included in the price, and annual fees are taken care of by the professional management company.

To date, there have been very few fractional resort developments in SA, even though the demand is high. As a result, real estate experts believe it is likely there will be substantial appreciation, rather than the depreciation that usually occurs with timeshares.

But how do fractionals compare with timeshares? They really do not: fractionals are far more exclusive and include many more luxury amenities and services than timeshares. They tend to be larger homes, usually three to five bedrooms. Whereas timeshares usually allow you use for just one to two weeks a year, fractionals offer from two to 13 weeks, which do not necessarily have to be consecutive.

"With regard to financing, obtaining a bank or mortgage company loan on a timeshare is difficult," says Heystek. "Rates are high, regardless of how good your credit. That is because it's a well known fact that most timeshares depreciate over time. Conversely, banks and mortgage firms consider fractionals to be appreciating assets and will often treat them like any other second-home purchase."

The latest offering in the fractional ownership market in SA is situated in Knysna, on the Cape Garden Route, which has become an international golf destination. The delightful climate and spectacular scenic attractions have contributed greatly to the international popularity the Garden Route enjoys.

Simola Golf and Country estate is situated in the heart of pristine Knysna woodlands with fantastic views over one of SA's favourite towns. The Knysna Heads and the lagoon form a spectacular backdrop to the estate, which has been developed around a world-class golf course, designed by Jack Nicklaus.

Setting a new standard in design and luxury, leading architects have designed homes for easy indoor and outdoor living that is in harmony with the natural environment. Private landscaped gardens form an extension of the golf course while secure walking and hiking trails through the Knysna forest add to the personal sanctuary.

Facilities at the estate include a golf driving range and practice area, club house, Grand Simola Hotel, Health & Wellness Centre, equestrian facilities, access to an exclusive river club which offers boating, canoeing and birdwatching from unspoilt waterways, secure walking, hiking, cycling and jogging trails as well as the Simola Butterfly World and Nature Centre.

The luxurious Simola Lodge & Country Club has been designed to offer accommodation to international fivestar standards. Facilities will include a health spa, gourmet restaurant, pro shop and heated outdoor swimming pool with breathtaking views over the Knysna Lagoon to the warm Indian Ocean.

Overlooking the Simola Valley, the Knysna Lagoon and the Simola Golf Course, the Grand Simola Hotel has been designed as a luxury all-suite boutique hotel to be operated to international 5star standards. It includes 60 twobedroom suites, a conference centre, health spa and gourmet restaurant.

Second-home markets are designed for shared ownership between families, groups of individuals or even corporate business partners. On golf establishments such as Simola Golf & Country Estate units include a golf membership, allowing the home owner to assign full golf membership privileges to whoever is in residence.

World trends are indicating a greater boom ahead for the second-home market, with a large percentage of affluent households interested in second-home ownership in the next two to three years. Second home buyers, who want a getaway that offers easy living, remain the driving force behind the growing second-home market internationally.

The second-home market is expected to double by 2009, putting pressure on the most desirable locations