select
|

Holiday home market expected to pick up during festive season

As the year comes to an end, many will be making plans to visit some of the country’s top leisure spots during the festive season. This provides buyers with an ideal opportunity to get a feel for these areas before making their final decision regarding purchasing a holiday home.

Broker/Manager of RE/MAX Coastal, Chris Van der Merwe, says that generally, Knysna, Sedgefield and the Wilderness are extremely popular holiday locations for both local and international holidaymakers. “We find that many visitors return to the region time and time again because they simply fall in love with what the area offers. With some of the country’s most beautiful terrain, it’s easy to see the appeal among holidaymakers and property buyers alike,” he says. “We have seen a number of people who have visited for a holiday, but then have come back to purchase either a holiday home or permanent residence.”

He notes that while economic conditions surrounding the property market have been challenging for consumers, with a large number of inland holidaymakers visiting during the months ahead, it is expected that the number of property transactions within the region will increase. “Those who have access the necessary finance can escape to a second home that is away from the hustle and bustle of city life to enjoy the lifestyle benefits these types of properties offer,” says Van der Merwe.

According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, 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. “However, as with any property investment, when looking to purchase a leisure property there are several aspects that buyers should consider to before deciding to commit financially. It is important to look at the key factors that will impact on the property’s investment potential,” advises Goslett.

Van der Merwe says that before making a final decision, buyers should find out a few things about the particular location they want to purchase a holiday home in, such as, the percentage of property price growth over the last three years, how many homes have sold in the area over the last 12 months, and how many homes are currently on the market in the area. Other aspects to consider include the daily rental one can expect the home to fetch while not in use and whether there are reliable property management agencies in the area. Ask the estate agent to provide a comparative market analysis of the home values in the area.

According to Van der Merwe, holiday homes in the region vary in price from as low as R1.2 million to as high as R10 million. “This season I believe the most popular price band will be the higher-end properties ranging from around R5 million to R10 million, purely because these are the homes that are currently available. Buyers in the region will pay more for homes that are close to the water, be it either the estuaries or the beach. These properties are highly sought after among buyers and holidaymakers,” he says. “Other features that make a home more popular among buyers are luxurious finishes, a swimming pool, braai areas and en-suite bathrooms.”

In conclusion, Van der Merwe says that the strong demand for property in the region is set to ensure positive returns on investment over the medium to long term.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 20 Apr 2018
      Whenever changes in the political ecosystem of a traditional property market create uncertainty, smart investors begin to look elsewhere for new opportunities. Property experts at IP Global have analysed the trends and crunched the numbers to find new markets to explore in Europe and the United States.
    • 20 Apr 2018
      Energy and water self-sufficiency are increasingly important factors in home buyers’ choice of property – especially in Cape Town where the extreme drought of the past few years has made municipal supply costly as well as uncertain.
    • 19 Apr 2018
      During the last decade, rampant development has progressively transformed Cape Town’s property landscape with densification being the order of the day, but there are still one or two hidden gems like Scarborough which have retained their original character, offering an inimitable lifestyle and an attractive investment opportunity.
    • 19 Apr 2018
      The rental market is a cut-throat sector of the real estate market that waits for nobody. According to Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, first-time renters need to be fully prepared before they even start the process of looking for a place to rent in order to avoid the disappointment of losing out on their ideal property.
    • 19 Apr 2018
      Choosing to buy your first home instead of continuing to rent is a big decision that will usually take some time to put into action, but the sooner you can save up a sizeable deposit, the closer you will be to reaching your goal.
    • 18 Apr 2018
      Selling your home is no small task and as you will quickly find out, there are a lot of misconceptions about the process. Gerhard van der Linde, Seeff's MD in Pretoria East lists the top 5 misconceptions when you are selling your home.
    • 18 Apr 2018
      The Cape Town municipality is now installing water-management devices at properties that have been non-compliant with the new level 5 water restrictions and there are talks of fines between R5,000 and R10,000 for households that use too much water.
    • 17 Apr 2018
      The recent interest rate cut has stoked the coals in the first-time buyer’s market. At least for the next two months until the next interest rate announcement, homeowners are guaranteed lower monthly instalments than in the previous quarter. But, is it wise to take out a 100% bond just to enter the property market while interest rates are low?
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK