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
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