Your home is your sandcastle - and a sound seaside property investment

‘Home is your sandcastle’... is a headline which appeared in the UK Daily Mail recently (June 28, 2013). The author goes on to say that (UK) ‘seaside houses can be eye-wateringly pricey but they make for shrewd investments’. He adds that beachfront living still sways buyers, giving the example of a dilapidated home on Sandbanks (in the area of Poole, Dorset) which recently fetched a record price for the area of £1725 per square foot, equivalent – according to the current exchange rate - to R276 000 per square metre.

This appealing, 581 square metre five bedroom, freestanding home in a gated estate in uMhlanga, with private beach access and a large sub-tropical garden is on the market for R21.5 million through Pam Golding Properties.
Elwyn Schenk, Pam Golding Properties (PGP) area principal for uMhlanga and uMdloti on the KwaZulu-Natal north coast says according to the Exeter office of UK property giant Savills, which has an association with PGP, waterside properties, with direct access to the beach, are the most valuable. “Richard Addington of Savills Exeter office reports that you can expect to pay a premium of up to 50 percent for these houses and he says although seaside homes usually come at a premium, they have the the potential for sound investment acquisitions in the medium to long term.  He says UK high street residential properties have bucked the trend over the past 10 years, increasing in value over this period by 63 percent, compared to a 30 percent return in the rest of the country. Even greater demand exists where there is direct beach frontage, yet the town centre is easily accessible.
“So how does this relate to our own coastline and specificially, here on the sought after KwaZulu-Natal north coast? In this context, seaside homes here are competitively and well priced. While prices per square metre can only be a guide, they are a reasonable basis for comparison. Here in uMhlanga there are several properties located right on the beach, which are marketed by PGP.”

Well positioned in uMhlanga, this freestanding, 520 square metre, four bedroom, four bathroom home in highly desirable Eastmoor Crescent, is right on the beach with direct access, and is priced at R14.5 million through Pam Golding Properties.
Schenk says two notable examples of these are a freestanding, 520 square metre, four bedroom, four bathroom home in highly desirable Eastmoor Crescent, right on the beach and with direct access, which is priced at R14.5 million and equivalent to R28 000 per square metre. In Marine Bay, close to uMhlanga village on Marine Drive, a 581 square metre five bedroom, freestanding home in a gated estate with private beach access and a large sub-tropical garden is on the market for R21.5 million, equivalent to R37 000 per square metre.
“Both homes require some modernising and updating but even allowing 10 percent of the purchase price for this, the price tags are extremely attractive, with little or no  premium for their position on the beach, or their convenience to the village with its numerous restaurants, shopping facilities and other attractions and amenities.
“In comparison apartments in the area - also on the beach, many with direct beach access, would expect to fetch between R30 000 and R40 000 per square metre. The benefit of proximity to uMhlanga village is that almost everywhere – including the beach - is a short walk away while with Gateway ‘Theatre of Shopping’ is a few minutes’ drive. Given the above, a luxury residential complex like Beacon Rock, selling off plan and located just one street from the beach represents excellent value at around R22 000 per square metre.
“So uMhlanga ticks all the boxes according to the ’home is your sandcastle’ definition, and at surprisingly modest cost. In fact a client of PGP who owns property in the Cape and KZN frequently comments about the excellent value which uMhlanga represents, by whichever measure.”
Having just returned from a trip overseas, Schenk says he has been struck by the renewed interest in property as an investment medium, and  says there has been a strong uptick in values in certain areas of the UK and the United States. “There is a feeling among some analysts that quantitative easing (QE) has released the tension in the key financial markets (Greece, Portugal and Spain being exceptions). However, for some QE is the ‘medicine which will become the poison’ because of the inflationary effect of printing money with no concomitant increase in value of the real economy. For many the best hedge against inflation is ‘hard assets’ especially fixed property, which, unlike gold, is an income generating asset.
“Whether a first time buyer or seasoned investor, quality property, especially on the coast, is worthy of strong consideration. Successful businessman, Warren Buffett has said ‘to build long term wealth, you must buy and hold real estate’,” says Schenk.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Feb 2018
      RE/MAX Property Associates’ Table View Office, which services property buyers and sellers along the Table Bay coastline and surrounds, has recently sold a home in Woodbridge Island for R11 million – the highest price paid for any home in the sought-after security complex.
    • 23 Feb 2018
      Choosing to invest in an overseas property can be daunting. But as more and more investors recognise the value of a diversified portfolio that includes property outside of their own country of residence, international property investment is growing in popularity.
    • 23 Feb 2018
      The positive change in South Africa’s political landscape is paving the way for an upswing in the local property market.
    • 22 Feb 2018
      An excellent credit score is one of the most priceless assets a potential home buyer can have. This tool has the power to secure favorable mortgage and refinancing rate, influencing everything from the size of the loan repayment to the interest rate on the home loan.
    • 22 Feb 2018
      What do you do if you love your home’s location and the area, but the home no longer fits your growing family’s needs? Do you stay and renovate your existing home or find a home that meets your developing criteria?
    • 22 Feb 2018
      While every owner wants to sell their property at the best possible price, overpricing a home can be the kiss of death for a sale.
    • 21 Feb 2018
      Given the hand they were dealt, government has performed a delicate balancing act which it is hoped will serve to reignite confidence in investment in South Africa, regain our global credibility and satisfy the credit ratings agencies, says Dr Andrew Golding, chief executive of the Pam Golding Property group.
    • 21 Feb 2018
      The real estate mantra, ‘location, location, location’ remains a strong market influence regardless of the prevailing economy, with suburbs like Rondebosch enjoying the buffering benefit of being ideally situated.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us