Beach Houses – Good Or Bad Investments?

Having a beach house is great! You don’t have to worry about accommodation prices that skyrocket during the holiday season and you have a place that you can call your own – where you can come and go as you please. The question is: Is it a good investment?

When buying a holiday home in South Africa, it’s important to see it as a long-term investment. Some couples in their 40′s buy holiday homes with the idea to move into the house once they’ve retired. By the time they are 60 the bond is paid off and they have a paid home in a holiday destination. Not only would they have made friends during there holidays but they would also have made memories in their holiday home – 2 things that will make them feel welcome when they move in permanently.

Maintenance might be a problem for some. Surely you don’t want to spend you holidays fixing fences and taming an overgrown garden. If this is a problem you might consider moving into a complex. Here maintenance would be done by the body corporate and a levy will take care of the costs involved.

Another factor that you might want to consider when you buy a beach house in South Africa is that fact that areas have life cycles. This means that you might buy into an area that you perceive to be good but in years time it turns into a dump – leaving you with no return on your investment. To avoid this happening it is important to build a relationship with a reputable real estate agent that has knowledge of the area.

When purchasing a holiday home or beach houses look for properties with sea-views or within close proximity of the beach. These properties tend to hold their value and are regarded as a sound investment.

Also look at the let ability of the property. It could secure you some extra income should you need it to pay off your bond.