1.  What are the main advantages of shared ownership?

Shared ownership is an affordable and sustainable way of owning a second home.  FOs offer an ideal balance between lifestyle and investment.  As a shareholder, you own part of an asset that is maintained and managed for you, allowing you the freedom to enjoy your precious holiday time.  Daily running costs are shared between owners with quarterly levies, and owners have the option of renting their share if they are not using it.

2.  Who manages and maintains the property?

The administrators at Hemingway Portfolio ensure that a highly qualified manager is assigned to each property.  This includes weekly cleaning, inventory checks, stocking the house with consumables, accounting, and administration related to the running of the property.

3.  What is included in the property levies?

Shareholders are required to contribute to a quarterly levy fun.  This fund is used to pay for the running of the property and company and generally includes gas, water, maintenance, repairs, insurance, and so forth.  The levy is made up of costs divided by number of shareholders.

4.  Are there other house rules to protect the property?

Yes, each each property has a clear set of usage rules set out in the Use Agreement signed by all shareholders.  THis agreement includes dates one can use the property, use of house contents, code of conduct, and so forth.

5.  Will the house be clean and look the same each time I use it?

Yes, we maintain a high standard of upkeep - similar to what one would expect at a hotel.  After each shareholder leaves, our management ensures the house is cleaned, serviced and in good working order with furniture and fixtures set out correctly so that the house will look and feel the same as when you first arrived.

6.  Is the house fully furnished and equipped?

The house on a syndicated property is always fully equipped with everything one would expect at a holiday home - cooking utensils, crockery, towels, fresh bed linens, soaps, firewood, candles, and so forth.

7.  Can I swop my weeks with other shareholders? 

Yes, shareholders are generally very helpful with one another in this regard. Hemingway Portfolio offers an administrative service for shareholders to swop or rent their weeks.  For the rental admin and marketing, Hemingway Portfolio charges a 20% commission which is deducted from the net rental income. Additionally, the Use Agreement dictates that a further 20% of the net income after commissions goes to the house.  This is because generally renters are harder on a property than shareholders.  This can provide some income for extra furniture, fittings and equipment or general refurbishment work.  No fee is charged if a shareholder swops his time with other shareholders or if guests of the share holder are accommodated.

8.  Can friends and family come to visit?

Yes - most of the cottages on our properties are built to sleep 8 to 10 people.

9.  Are pets allowed on the property?

Pets are not allowed on the property - this is outlined in the Use Agreement.

10.  How do I go about acquiring a share in a property?

Acquiring a share in the property is similar to acquiring a share in a company.  As a shareholder, you agree to abide by the rules governing usage and control of the property and then you are allocated a Share Block with consists a block of shares with a specific number which is linked to a time schedule for your usage of the property.

11.  What agreements do I need to sign when purchasing a share?

12.  How is the property legally owned?  

The property is held in a private proprietary share block company

13.  What is a Shareblock company?

14.  How do I go about selling my share?

Shares may be sold to the open market at any point in time, should shareholders wish to do so.  Existing shareholders have first option to purchase at a market rate and need to do so within 30 days of notice.  Hemingway Portfolio will assist shareholders in this process and help market the sale of shares.  HP charges a small commission of 3.5% on the sale of a share to an outside investor.  No commission is charged for the sale of a share to another shareholder in the same property.  Share holders are also free to sell their shares through an independent broker or estate agent

15.  Do I have to pay capital gains tax when I sell my share?

16.  Does transfer duty apply?

Yes, the normal Transfer Duty rates are applicable on the price of the share.  On the first R500K = 0%.  From 500K - 1,0mil = 5%.  For 1,0million + = R25,000 PLUS 8% fee.  For Companies, Trusts, or CC = 8% flat rate.

17.  How often are AGMs held?

AGMs are held once per year.  It is a time for all shareholders to get together to freely discuss or vote on matters regarding the property or company.  It is also when the company financial review takes place.

18.  How many shares are available for sale?

19.  How many shares may I purchase?

20.  Can my company or trust buy a share?

21.  What happens if you don't sell all the shares?

22.  Who will help me sell my shares?

23.  Will my share increase in value?

24.  Are all the share prices the same?

25.  How many weeks acess does my share allow me per year?

26.  Can I divide my share?

27.  Do shareholders know one another and how often do they meet?

28.  Do I have any input with regards to the furniture and fittings?

29.  Can I make my own renovations to the villa?

30.  Are the villas environmentally friendly?

28.  What are the additional costs?