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
Characters remaining

    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us