Four factors making NOW a great time to buy a holiday home
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The advantages of owning a holiday home cannot be overstated. Having a "home away from home" haven where your family can go to enjoy their favourite pastimes and make the most of some down time is a dream come true. Over and above this, you could choose to rent out your holiday home when you're not using it, especially if you have invested in one of South Africa's best-loved holiday areas. There are a number of factors that have come together to make the end of 2020 the perfect time make your holiday home investment.
Factor 1: Interest rate cuts and favourable transfer duties
The end result of a number of interest rate cuts announced during 2020 is that since 23 July 2020, South Africa's repo rate is at a historic low of 3.5%. This puts the corresponding prime lending rate at 7%, which is excellent news for those considering investing in a holiday home. The rate has now been slashed by 300 basis points in 2020 in order to mitigate the economic impact of COVID-19. Further good news is that the Minister of Finance, Tito Mboweni increased the transfer duty threshold to R1 000 000 in his budget speech given in February 2020, meaning that if you're buying property for under R1 000 000, you won't be paying transfer duties. In monetary terms, you will be hard-pressed to find a better time to invest in a holiday home.
Factor 2: The abundance of homes available in various parts of South Africa
There are a number of areas of South Africa that make great holiday homes, due to the abundance of things to do and an outdoor way of life. The great news for those looking for a holiday home is that there are plenty of breathtaking properties on the market in these areas, in a variety of price brackets. Cape Town, for example, has it all, from trendy apartments in the city to sprawling family homes, while Western Seaboard suburbs like Blouberg offer an array of two-bedroom apartments and three-bedroom houses.
East London's seaside suburbs such as Gonubie, Kidds Beach and Nahoon Beach boast an array of beautiful houses and stylish townhouses, a number of which fall under the R1 000 000 price mark.
Those interested in buying a home in the paradise that is Wilderness can expect to find everything apartments with one to four bedrooms, as well as assorted sectional title properties and freestanding houses.
Heading to KwaZulu-Natal, those wishing to purchase a holiday home in Ballito will find an array of duplexes, villas and freestanding houses.
Factor 3: The ability to fetch attractive returns on buy-to-let holiday homes over peak seasons
When you're not using your holiday home, this investment has the potential to earn you extra income. The amount that you are able to charge will depend on where the property is, how many bedrooms it has and how upmarket the property and its finishings are. Top tips for renting out a holiday home include not overpricing the property and having simple, practical furnishings. Consider using a Jawitz #RealPartner to help you find the right holidaymakers to enjoy your home away from home. It's important to keep your expectations realistic and understand that short-term rentals may not always cover the costs associated with your holiday home.
Factor 4: All the benefits of owning a piece of paradise
Your family's holiday home will quickly become a place of refuge to escape to for a holiday or weekend when the stress levels start to rise. Every family has the freedom to choose a property with proximity to the leisure activities that they love most, and it is a place where many memories will be made over the years.
Now is the time to invest in your holiday home. Contact the team from Jawitz Properties today and let the journey begin.
Author: Jawitz Properties
