Real Estate Investor Magazine Mozambique Real Estate Investor Magazine Mozambique 2014 | Page 12

upfront

it’s deed will also entitle shareholders to
certain usage rights, but this is usually in the
form of a ‘time-share’ concept.
However, one must take note that fractional
ownership and shared ownership are two
different structures. Fractional ownership
allows more benefits and freedom compared
to a time-share (e.g. if the property within the
development appreciates in value, then so do
the shares of the home). Therefore, the owners
profit (fractional ownership), compared to
the buying of shared ownership and receiving
time-share in the property. You are still only
entitled to the pre-determined period (a set
number of ‘stays’ per year), regardless of the
value of the propety.
Another distinction is that with time-share
one buys the right to use the property for
a period of time; whereas with fractional
ownership one actually buys the physical real
estate and the building, as an entity, within
the overall development. This is transferable
for profit.
There are many avenues for navigating the
trials and tribulations of the Mozambican
real estate market in terms of investments
procedures. If done in a correct manner, these
procedures currently yield high returns on
these investments, particular in the capital city
of Maputo. Otherwise, these avenues offer
the individual; his or her share of ‘paradise’ in
the northern regions of the country.
For South Africans in particular, one must
remember there are tax benefits for investing
in Mozambique. One such benefit is a double
tax treaty between the two countries to
enable the attractiveness of diversified assets
in Mozambique for South Africans.

Notes to remember:

It is suggested that with any land or investment
activity in Mozambique, a reputable legal council is
approached for assistance and in doing so will ensure
all due diligence is carried out to protect the investor.
All land in the country is property of the State.
Ownership merely entails the ‘right to use’ the land
for an extended period of time with all physical
buildings transferable in th Z\