select
|

A home away from home

With millions of South Africans about to migrate to many holiday destinations throughout our beautiful country, those who are looking for a way to make the most of some money they may have saved up, might be considering purchasing a second property or holiday home as a solid long-term investment, says Adrian Goslett, CEO of RE/MAX of Southern Africa.
 
“While being a full-time landlord may not be for everyone, there are other options for buyers who would like to invest in a second property,” says Goslett. “Based on the fundamental economic principle of supply and demand, a well-chosen holiday home for example, is a great way to own property and make money by renting it out to holiday makers during peak seasons. Many holiday homes offer excellent potential income during holiday seasons. This way investors have the opportunity to reap the benefit of owning an immovable asset that helps pay for itself.”


?4 Bedroom House to rent daily in De Bakke, Mossel Bay
 
Goslett says that while property prices have started increasing, there are still value-for-money opportunities in the current market, with conditions still in the buyer’s favour. “Another plus point for those considering purchasing a holiday home is they will have a place that they can escape to as their private getaway.  Whether it’s a coastal property, in the mountains or the bushveld, a holiday home offers the owner a chance to take some time out.”
 
He notes that considering the cost of holiday accommodation - particularly during peak holiday periods - a holiday home investment could make sound financial sense over the long term, especially if the buyer regularly spends money on holiday accommodation. “Why not use the money spent on holiday rentals to buy an appreciating asset and have other holidaymakers help to pay off the bond? Twenty years or less from the date of purchase, the owner could have a fully paid off holiday home that could become a retirement residence or be left to their children as a legacy of free holiday accommodation,” says Goslett.
 
He notes that as with all property investment ventures, it is always important to consider the holiday home’s location. Goslett adds that when it comes to investment and long-term appreciation, well located holiday properties – whether at the coast, in the mountains or in the bush - will always offer the best return on investment. This is due to the fact that these kinds of properties are generally always in demand because of limited geography and supply. He notes that the natural splendour and the relaxed lifestyle offering of these kinds of properties appeal to a wide spectrum of buyers who are looking for a holiday getaway, retirement residence or just a lifestyle that is far removed from their daily city life.
 
According to Goslett properties with ocean views are highly sought after, along with properties that are within walking distance to the beach and close to amenities such as shopping and entertainment facilities. Properties in the mountains as well as those situated in the bush will need to have good views and relatively easy access to amenities like shops. He notes that these elements will not only have an impact on the property’s appreciation, but also its possible rental income value and how many holidaymakers it attracts.


?2 Bedroom Flat to rent daily in St Lucia
 
Goslett advises that before any buyer takes the plunge and purchases their holiday home, it is vital that they carefully consider their financial standing and take into consideration aspects such as transfer costs, possible interest rate increases, ongoing monthly maintenance and security. Another important consideration is the practical implications of managing another property, especially if it is situated in another town. In these cases the owner may need to think about hiring a professional management agent to look after the property and place tenants.
 
“With the relevant research and professional real estate advice, a holiday home purchase can be a viable long-term investment option that the owner can enjoy both now and in holiday seasons to come,” Goslett concludes.


  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