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Why should I invest in timeshare in Umhlanga Durban
March 13, 2013

The Origins of Timeshare in South Africa

cabana-beach-images2The timeshare concept was initially developed during the mid 1960’s in Europe mainly in England and spread to the first developments being introduced in the United States in 1974. The concept of splitting a resort into 50 owners per unit (two weeks for maintenance per annum) spread to South Africa when the concept was “sold” by Brian Stocks to the Southern Sun group who introduced the first timeshare product being the Umhlanga Sands in 1982.

The Umhlanga Sands comprised 237 partially self contained units which went on the market for less than R2500 out of season for a four sleeper unit up to R25000 for a six sleeper unit in the main in season weeks at the end of each December. The success of this first venture resulted in additional units being launched on a yearly basis by the Southern Sun group for example in 1983 the Beacon Island Plettenburg Bay, 1984 Cabana Beach Umhlanga 1985 Sabi, 1986 Pine Lake etc. From those early days numerous other parties have developed projects in South Africa to the point where fixed timeshare resorts now number in excess of 150. Worldwide over 5000 resorts have been developed with an inter woven network available through the exchange organisations RCI (Resort Condominiums International) and Interval International/Sunswop which allow owners to inter change between their own resort both nationally and internationally.

The question is often posed as to whether timeshare holidays offer good value for money or not? Whether one owns in high season or low season periods, it can categorically be stated that ownership affords good value and an excellent return on ones investment. Whilst the main criticism of timeshare today is the rising cost of levies, this must be related directly to the rising cost of hotel accommodation. Whereas a  levy thirty years ago in an out of season period for the week may have only been R270 and the cost of a hotel unit for a week for four persons was R2500. This in todays terms would be approximately R4000 for the levy with normal hotel accommodation in the same resort being approximately R12600. A further question often asked is, is timesharing a good investment? Whereas in out of season periods, ones capital growth is often almost negligible investment should be looked upon on the savings realised between the annual levy and the cost of standard hotel accommodation per annum. The situation however is somewhat different with regard to high season weeks where growth has been in some instances phenorminal with increases from original purchase of R25000 for a four sleeper unit now reaching the level of R140000 thirty years later. One should also of course bear in mind the savings realised during the interim period of use.

Should you be considering purchasing a timeshare unit and need advise on what to buy and where to buy, contact Quantum Sun where we will happily assist in any purchase you may be considering. May we suggest you contact us on our e-mail or telephone where we will be happy to discuss your future timeshare purchase. Also why not pass this information onto friends and acquaintances.