Advantages Compared To Other Sectional Title Hotels
Parktonian – Advantages As Compared To Other Sectional Title Hotels
- Please see the warning on our INVESTMENT ESSENCE page: Not all Sectional Title Hotel room schemes offer a fair deal to investors. We do! Each of our unit buyers receives a 1/300th share of ALL the net income, after expenses and management fees, from a large viable all-suite hotel with over 30 years of goodwill and track record. The hotel is very well established in the corporate and institutional markets, and has a substantial existing base of repeat business.
- The original purchase prices for the suites at launch in 2006/2007 was about R442 000 and was very reasonable. This worked out at about R8 500 per sq metre, including built-in furniture, fittings and equipment; and free use of movables. By comparison, Cape Town hotel suites were then selling at about R14 000 to R20 000 per sq metre, including furniture, fittings and equipment and Durban hotel suites at about R12 800 per sq metre. Hotel suites in Sandton were selling at R25 000 to R30 000 per sq metre.
- Comparing today’s prices, our units were last year selling at about R600 000 per unit, and we expect sales this year to be at R650 000 or more – still very reasonably priced. Our INVESTMENT DETAILS pages show that we have a good ten year track record compared to other investments. Those page also show that our vision for the future is very positive. So we expect the resale prices of units to move steadily up to and beyond R700 000. Our ambition is that these units will be worth some R1 million in several years time.
- Cape Town Sectional Title Hotel units have also moved up in price and units are now selling for in the region of R2 million to R2.5 million per unit.
- The Parktonian Sectional Title Hotel units are generally bought for prices that represent a large discount on their replacement cost.
- Our buyers can expect good income plus capital growth, and the possibility of leaving a good growth asset to their beneficiaries.
- Our buyers have an investment that “manages itself, markets itself and virtually pays for itself”, due to active management by the Management Company.
- Our buyers have flexibility – the investment can be held for long term income and growth or can be sold at any time, like any other Sectional Title property.