Pont Deluxe Shared Ownership FAQs
Pont Deluxe Shared Ownership gives you all the lifestyle benefits of owning a managed luxurious holiday property without the high costs. Unlike timeshare concepts, shared property ownership means you don’t just buy time or points, but you in fact OWN a share in the legal entity to which the property belongs.
- There are 13 shares available per property.
- You can own more than one share.
- Shares are purchased either by once-off payment, or you can apply for a 12 to 24 month payment plan.
- When purchasing a share, it remains in your name for life unless you sell your share.
- Each share entitles you to 4 weeks a year of usage of the property as per your selected schedule.
- The share means you own part of the legal entity to which the unit itself belongs.
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Two usage options are available:
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Investor Option: Entitles you to 1 off-peak weeks usage per year, giving Pont de Val the opportunity rent out your other 3 weeks per year for you. You’ll receive 55% of the rental income and Pont de Val will market, manage bookings and service the unit on your behalf. Levies for this option are lower than the Holiday Property Option.
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Holiday Property Option: Entitles you to 4 weeks usage per year with full-service housekeeping during your stay. Levies for this option are higher than the Investor Option.
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- Furniture and equipment are replaced as needed due to wear and tear at no extra cost – all incl. in the levy for a hassle-free experience.
The purchase is a share in a company linked to a usage right of 4 weeks depending on the schedule chosen by the buyer.
Illustration of ROI and yield calculation for someone investing in a Pont Deluxe apartment share for 5 years:
This illustration shows how the return on investment and yield from investing in an apartment at Pont Deluxe could be calculated for someone holding an investment in one share in a Pont Deluxe apartment for 5 years then selling it. Each owner is free to hold their share in the appartment for as long or short as they like, we have just chosen 5 years as an example to give a helpful illustration. There is of course two ways to consider this as an investment, you can ignore the value you get out of using the apartment yourself – and see it as an investment with a modest return, where you get free holiday accommodation as an add-on (row 6). Or you can look at the saving you make on using your own holiday accommodation, rather than booking holiday accommodation each year – as part of your financial return, giving a bigger financial return (row 9) and yield (row 10). We have shown the resulting Return on Investment and yield for each option in the ‘Investment return illustrations’ table below. This is of course not financial advice, it is simply an illustrative calculation, based on the assumptions below the table, providing information regarding the possible financial implications of investing in an apartment share in Pont Deluxe. With different outcomes the actual financial return may be more or less than shown here – for instance the actual outcome may vary from the stated assumptions.
Row | Notes | |||||||||||||||
1 | When buying a share in an apartment within Pont Deluxe you get the rights to the propoerty for 4 weeks a year you can choose between the ‘Investor’ option, where you use the property for yourself (or your friends and family) 1 week a year – then rent it ou through Pont De Val for income the other 3 weeks a year – for a hassle free investment return. | |||||||||||||||
2 | This is the cost of purchasing your share in the apartment at Pont Deluxe | |||||||||||||||
3 | This would be 5 years worth of levies, here we have assumed 7% inflation per year in levies costs | |||||||||||||||
4 | This would be the rental income you receive from Pont De Val renting out the apartments for you. Here we have assumed 7% infation a year from the discounted mid-week room rate as per October 2022 and 50% occupancy. | |||||||||||||||
5 | This would be the cash you would get from selling your share in the apartment, we have assumed you sell after five years with 7% inflation of price per year, and with 10% budgeted for selling costs/agent fees. Of course you would be free to hold the investment for longer (or shorter) if you like, its the owners free choice if and when they want to sell! | |||||||||||||||
6 | This is your return on your investment, calculated as all your income from the investment, (eg income from selling your share and any rental income you get if you decide to rent it out) less your costs (eg cost of buying the share in the first place and the cost of levies). | |||||||||||||||
7 | This is your return on investment – as explained above – as a percentage of your initial investment, and divided by five for the time the investment was held for this illustration. This gives an illustration of the possible yield on the investment, as an annual percentage of the initial investment. Of course you are free to hold the investment for as long or short as you like. | |||||||||||||||
8 | This is an estimate of the saving you make by using your own apartment at Pont De Val, rather than booking the same appartment as a one off booking like everyone else. We have assumed you actually stay in the apartment for half the time you are entitled to, and have estimated the booking cost form the website price of booking midweek in October 2022, adjusted for inflation at 7% per year. | |||||||||||||||
9 | This would be the total return you get from owning a share in the apartment taking the total return in row 6 above, and adding on the Savings form own usage, described at 8 above. | |||||||||||||||
10 |
This gives an illustration of the possible yield on the investment, as an annual percentage of the initial investment, similar to row 7 above. But here we also include the value of the savings you can make by using your own accommodation at Pont Deluxe rather than making bookings online. The savings are based on assumptions as per row 8 described above. |
- The actual occupancy rate will vary depending on which accommodation PDV customers book. In 2021 PDV had a 50% occupancy rate across all its accommodation. On Pont Deluxe as a new accommodation offering the occupancy rate has been significantly lower, PDV is aiming to continue to increase this over the coming period, with increased other offerings on site, such as a second large venue for weddings and other events expected to increase demand for accommodation. Generally occupancy in new accommodation increases overtime with a lower occupancy rate for the first year.
Shares can be sold to another individual: As with any other property the selling price depends on what someone is willing to pay for it. We believe that in line with recent years the value of properties at Pont de Val Estate will continue to increase in the years to come. Once you have found a purchaser willing to buy at a certain price the other shareholders in Pont Deluxe must be given a chance to match or beat what the other person is offering. This means you should always get the maximum value on selling your share.
- The unit can be used by family or friends of the shareholder, without the shareholder being present. Only restriction is the maximum number of occupants per unit e.g. 3 people can not stay in a studio apartment. Such private arrangements should not be in exchange for payment.
- If you want to rent it out if you are not using it, it must be done through Pont de Val.
- Pont Deluxe levies are decided by the shareholders (i.e. all those who own shares in the apartment) on an annual basis based on the budget. Levies payable to the Cote de Val Estate Body Corporate are decided by the members of the body corporate of which Pont Deluxe forms part.
- Maintenance and all other operational costs within the Share Block Company is shared across all the apartments in the Pont Deluxe Share Block.
- Levies are paid on a monthly basis for as long as the individual owns a share in the apartment.
Each unit is fully furnished to Pont de Val’s standard. Furniture and equipment are replaced as needed due to wear and tear at no extra cost as this is already included in the monthly levy charged.
Pont Deluxe Share Block (Pty) Ltd will distribute the revenue directly to the owner’s bank account on the 25th of the relevant month.
You can rent out your unit out through Pont de Val if you are not able to make use of your allocated week. You will receive 45% of the room rate.
You can rent out your unit out through Pont de Val if you are not able to make use of your allocated week. You will receive 55% of the room rate.
For both the Investor and Holiday Option, daily cleaning is included in the monthly levy. Breakfast is available at additional charge.
- If the damage was deliberate or due to negligence, Pont de Val will try to recover the costs from the guest.
- If costs can not be recovered by the guest, Pont Deluxe will share the cost equally with Pont de Val.
- You will have a life-time membership for as long as you hold the share in Pont Deluxe. For current offerings within the membership please follow the link: https://www.pontdeval.com/pontpremiere/
- This is included in the monthly levies.
For Pont Deluxe Share Block Company there will be no future phases. This means the current investors wont be diluted by more share blocks or more shares being issued.