Top considerations when purchasing a holiday home

With the festive season around the corner, many will have their minds set on taking a break and spending some time in one of the country’s sought-after leisure destinations. 

Not only is the holiday period a great time to get away and relax, it is also the ideal time for potential holiday home buyers to visit the areas they wish to purchase a home in.

According to Simon and Kim Peacock, Broker/Owners of RE/MAX Dolphin Realtors, whose offices service KwaZulu-Natal’s northern coast from La Mercy all the way to Zinkwazi, those who are contemplating purchasing a holiday home can use this time to get a feel for the destination of their choice. “Considering that a property purchase of any kind is a long-term commitment, it is important that the buyer decides on a destination that they will be happy to visit every year,” says Peacock.

 “Location is a highly important factor with any property purchase because it determines so much of the home’s investment potential. When purchasing a holiday home there is an added dimension to selecting the location, as it must also be a place that the buyer and their family thoroughly enjoy visiting.”

Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, says that apart from security, lifestyle offering is a driving force behind buyers selecting the homes that they do. “When it comes to purchasing a home, especially for leisure purposes, buyers place a lot of importance on the lifestyle benefits that the home and its surrounds offer. Buyers want homes that are well-situated to the area attractions and lifestyle elements,” says Goslett.

Peacock says that there is a very high demand for properties along the Ballito beachfront due to their direct access to pristine beaches. These homes are also within walking distance to shops, restaurants and night life. “Properties along the beachfront also yield an excellent return in the holiday letting market as well as enjoying excellent capital growth,” he says. “I expect that the highest demand during this holiday season will be for homes priced between R2 million and R4 million. The price range is vast, but this is due to several factors such as proximity to the beach, ocean views and whether or not the property is situated within a secure estate.”

They note that the estates on the north coast namely, Zimbali Coastal Resort; Simbithi Eco and Golf Estate, Dunkirk Estate and Brettenwood, offer a secure, resort-style home-away- from-home and will also be in high demand this December. “These estates are all close to the beaches and provide the owners with peace of mind.”

Peacocks says that there are a few aspects that buyers should consider when purchasing a holiday home:

1. Proximity to the beach

2. Whether or not the home will be let out when not in use in order to get a return on  investment

3. The levies or Home Owners Association fees payable if the property is sectional title or within an estate as this is an additional monthly cost

4. Is the holiday apartment or home required to be pet friendly?

“When selecting a property, buyers should pay attention to any additional monthly costs such as special levies. Security is also an important aspect for a holiday home, as it will be left unoccupied for extended periods of time. Maintenance should be considered as holiday homes need to be maintained on a regular basis – especially ones at the coast. If the owner cannot maintain the property themselves, they should consider hiring a garden service and a cleaning service to regularly air and clean the property,” adds Peacock.

She notes that it is essential that the prospective buyer works with a qualified agent who specialises in the area to ensure that they get the right holiday property for them.

In closing, Peacock says that property is considered to be a strong asset class in which to invest, particularly over the medium to long term. “A leisure property can prove to be a home to enjoy as well as an investment that generates healthy returns.”

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