PROPERTY: Look At Rental Options Beyond 2010
Recent Western Cape Business News
While investors in luxury apartments and villas have their eyes firmly fixed on the rental bonanza that the 2010 World Cup is likely to bring, they also need to consider ways to attract sustainable rental options both before and after the tournament.
According to Tanya Joubert, Director of Cape Locations, which represents a variety of luxury properties including apartments and villas in Cape Town and the Cape winelands area, property owners need to have a plan in place to ensure their properties are consistently generating an income.
“One of the most overlooked options for luxury property owners is leasing out their apartments or villas to international production crews for stills shoots or as accommodation for film crews,” says Joubert.
Over the last ten years, South Africa has grown to become one of the most popular and dynamic stills and film production destinations on the planet.
Currently, the stills production industry turns over around 11 000 shoot days per annum, and generates more than half a billion South African Rand for the local economy.
Foreign filmmakers are also taking advantage of the country's diverse, unique locations – as well as low production costs and favourable exchange rate, which make it up to 40% cheaper to make a movie here than in Europe or the US and up to 20% cheaper than in Australia. According to a recent economic impact assessment study commissioned by the Cape Film Commission, the industry has a direct annual turnover of more than R2.65-billion and contributes an indirect annual turnover of more than R3.5-billion to the country's gross domestic product.
“With South Africa increasingly the flavour of the moment as the World Cup draws nearer, the number of enquiries from production crews looking to shoot in Cape Town before, during and after the tournament has shot up dramatically, says Joubert.
She says Cape Locations is seeing a lot of interest from production crews looking for apartments and villas along the Atlantic Seaboard in particular, to use as settings for magazine and catalogue shoots. “Owners are earning up to R25 000 per day and have the added benefit of having their properties showcased to an international audience.”
Joubert adds that when it comes to film shoots, pre production and shooting can last up to six months. “The production companies have realised that it is often far cheaper to rent apartments for the crew members than to put them all up in hotels for that length of time.”
Production companies often require up to thirty or forty properties at a time, varying from middle of the range apartments and houses for the majority of crew members all the way up to top of the range luxury villas for the directors, producers and actors.
The rates vary according to season, area, views, number of bedrooms, furnishings, proximity to amenities and distance to the beach. “So while not everyone should be expecting the R15 000 a day that a five bedroom luxury villa in Clifton with a rim-flow pool overlooking the beach can fetch, up-market apartments and houses along the Atlantic Seaboard can still average an impressive R50 000 per month.”
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