Real Estate Investor Magazine South Africa February 2014 | Page 53

OFFSHORE Atkinson says it’s best to involve an accountant to give you a projection of all matters relating to the tax implications. suggests that you should also assess the going rental rates by searching for similar properties in the area online. What do you need to know about the property? A holiday home can bring great joy to a family, and if bought with caution and consideration, can As with any other property, you will need to check the building and the roof for any structural damage. Look for damp or weak areas, and any poor finishes that will need replacing. The seller will be obliged to provide you with an electrical compliance certificate, and, in certain municipalities or areas, a gas compliance certificate, a plumbing certificate and a beetlefree certificate. The beetle-free certificate can be waived by agreement between both parties. What you need to know about the value and rental prospects of the property Speak to more than one estate agent in the area to find out about local property price growth and rental rates. Find out about how many months out of the year you can expect occupancy – considering as well that you might like to use the property during rental high season. Atkinson “A well-chosen holiday home is a great way to own property and make money” be good investment too. She says by informing yourself carefully about every aspect of your purchase, you can set yourself up for a happy future in your home away from home. 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. 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. Whatever you decide to do, make sure you arm yourself with the right knowledge and the right people to help you take the plunge into investing in holiday properties. RESOURCES RE/MAX, ooba, Property 24 2014 SPECIAL SUBS OFFER Two for the Price of One Buy a 1 year subscription for only R600 and get the second one for FREE Visit www.reimag.co.za find us on facebook www.facebook.com/Real Estate Investor Magazine find us on twitter www.twitter.com/Sa_Reimag find us on youtube www.youtube.com/reimag REALE ESTATE BUSINESS DIRECTORY