select
|

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
  
2000
Characters remaining


    Latest Property News
    • 15 Jun 2018
      The second quarter of 2018 has proven to be the turning point for Midrand’s real estate market, especially the upper end which started to waver towards the end of a tumultuous 2017 with a notable drop in both sales and average selling prices.
    • 15 Jun 2018
      According to data recently released by FNB, the average age of a South African home buyer has increased from 38 to 44 this year. In an attempt to help first-time buyers enter the market sooner, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, walks us through the steps of saving for your first home.
    • 15 Jun 2018
      Putting your house on the market can be a stressful process. There are so many decisions to make that will impact how quickly your house is sold and for how much you can sell it for. It’s a serious money game where you can’t afford to make the wrong decision.
    • 14 Jun 2018
      The word tourist describes someone who is visiting South Africa for a limited time and is probably not going to buy a property here – so why is the tourism industry so important to the real estate sector?
    • 14 Jun 2018
      Serengeti Estates has entrenched its status as one of Johannesburg’s most desirable addresses for a spectrum of homeowners with its launch of The Signature Residences, a new cluster village.
    • 14 Jun 2018
      Keen interest shown at an international event in Hamburg last month has revealed that German investors have a surprisingly healthy appetite for South African real estate, especially those in the market for retirement properties.
    • 13 Jun 2018
      Well located urban properties, from that convenient city pad to the family townhouse or the coveted buy-to-let property can provide buyers with great investment returns over the long term. This is according to Fine & Country which have a number of offices in Johannesburg specialising in the sale of urban properties.
    • 13 Jun 2018
      A R200 million 51-unit luxury apartment project on a vacant lot at 169 Main Road Green Point places the capstone on the radical transformation of the stretch between de Waterkant and Glengariff Road.
        
    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