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Top 5 tips for investing in a holiday home
Top 5 tips for investing in a holiday home
Date: 2017-12-01
As the festive season draws near, many will be starting to make arrangements to spend some holiday time in South Africa's most sought-after leisure destinations.
As with any property investment, when looking to purchase a leisure property there are several aspects that buyers should consider before deciding to commit financially.
Here are the top 5 tips that holiday home buyers should consider to ensure a good return on their investment:
1. Location: There is a reason the adage of 'location, location, location' came about - because there are few aspects that influence a property's investment potential like where it is situated.
2. Upcoming plans: It is best to view property as a long-term investment. Don't just consider what an area looks like now, look at possible future developments or plans for the area.
3. Affordability: Before heading down the holiday home route, consider your financial position, paying particular attention to the acquisition costs such as a deposit, transfer fees, and conveyancing fees.
4. Property management: There are a few practicality issues with managing a home in another town, so it might be worthwhile hiring a professional property management company to look after the property.
5. Will you get good use out of it A holiday home can generate rental income, but the most lucrative times will be during the holiday seasons, which is most likely the time you would want to use it.