BuyingLifestyle

Do Your Homework Before Buying a Holiday Home

South Africa is known for its beautiful beaches and coastlines. Areas along Durban North and South Coast, as well as the Garden Route, are featured holiday destinations for those who choose to live inland.

If you are one of the many inland visitors who drive down to the coast on a regular basis, then it actually makes perfect sense to invest in a piece of property there.

Having your own leisure home near your favorite holiday destination can save you the trouble of having to book into a hotel room or lodge. Your own holiday home means you will have your own kitchen. So no more expensive take out or room service.

There are many other reasons to invest in a leisure home.

But instead of rushing into just any property, you should do your homework first. Research on a holiday home is just as important as doing research on any type of property or investment:

Location is Key

The importance of location is a factor that always seems to be misunderstood and taken for granted by most buyers.

Location is even more important when seeking a holiday home.

You could find a lovely affordable place right in the centre of your favorite coastal spot. But this may be an area that is densely occupied during the holiday periods, a time when traffic is at its highest.

A simple thing like a morning coffee run can become a tedious task that takes up your entire morning.

A good investment could mean purchasing a property in a good suburban neighborhood a few kilometres away from these high traffic holiday areas. If you do go this route, make sure to find a place in an area that will retain its value in the years to come.

An example would be to not invest in an area that has a steadily increasing crime rate. Do proper research into the neighborhood background and also the trends surrounding that area.

Correctly Estimate All Costs Involved

Once you have decided on a property, you should take into careful consideration the costs that go along with buying a home.

There are acquisition costs such as transfer fees, deposits, and other conveyancing fees. However, there are always other additional costs to be aware of such as insurance and monthly maintenance. If you choose to go for something within a complex or estate, then you may have to budget for monthly levies as well.

There are many implications to managing a property from a different town. Finding a suitable, trustworthy person to help take care of your holiday home can prove to be difficult.

It is advisable to rather work with a professional property management firm in regards to this. However, this option will incur further additional costs to an already stretched budget.

Seeing that there is plenty of money to be spent here in regards to investing in your annual getaways, you can look at trying to get back some of that money by letting out the place.

If you don’t use the home regularly throughout the year, then considering to rent out the place during periods when you are not available is a good idea. You can also use a letting agency or a network such as Airbnb to help you find suitable people.

If you do choose to purchase a property with the hopes of partially letting it out, there is still a risk of incurring a considerable amount of debt if not managed properly.

This is why it is always a good idea to do your homework first so that you can explore the various options that are available.

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