You have extra disposable income and you want to invest it in property.
The coast is calling, that holiday property you were considering looks more attractive now.
The South African coast is an ideal holiday destination for international- and local tourists alike. With the current interest rates being favourable to buying, even foreigners are flocking to South African holiday destinations to invest.
How do you select the ideal suburb to invest in, and what do you look out for in the property itself? Keep in mind that the coast with its salty humid atmosphere is very corrosive.
Selecting a property
Are you an outdoors holiday maker, or do you just need a place to recuperate? Selecting your specific requirements is also important. The closer we get to the beach-front, the worse the effects of corrosion will be. Untreated wood and steelwork are often the victims of corrosion. Window frames can be a major problem as paint can conceal corroding steel without one being aware of any damage.
Corrugated iron roofs on older properties will also require some close inspection as these properties date from an era long gone. Age is thus a very important factor: When looking at Cape Town, the properties in Newlands are not as prone to the effects of the elements as Muizenberg or Strand. Thus, the location will determine what to look out for in terms of corrosion and wear and tear. The location is also a factor in pricing of holiday property.
Woodwork is also exposed to the elements and repair costs on woodwork will be high.
Location and suburb
Beach-front living comes at a premium due to the demand. The demand for a sea view and that holiday feeling of hustle bustle, glamour and chick. These holiday apartments are generally lock-up and go exclusivity. This is true for destinations like Umhlanga on KZN's north coast or Ballito. It is advisable to know what you need in a holiday property is just as much as your primary residence. You will hold onto this property for at least five years before you can sell it at a profit and upgrade. If you don't enjoy the hustle and bustle, then the more traditional residential property would suit you and the returns are just as rewarding, given that the market condition is prevailing.
There are some coastal properties that are currently performing well, but it would be advisable to study market trends over a longer period to assess the correct value of property.
Myroof has holiday properties in all the sought after destinations. Visit www.myroof.co.za for all your property needs.