Is Coastal Property still Financially Wise?

dyllindd

Well-Known Member
Joined
Nov 9, 2012
Messages
235
Good Day Everyone,

I sincerely hope that you are all keeping well.

What are your thoughts on buying coastal property? Is it still a good investment?

I am considering a beachfront apartment in Amanzimtoti. This would be to vacation there myself and rent out. The apartment is currently listed on booking websites so might not have to work so hard to get it marketed. It comes fully furnished and has been renovated.

I am aware of the increased maintenance needs of coastal property and the plan would be to purchase in an apartment block so that I only need to worry about interior issues and maintenance.

Thank you in advance.
 

RonSwanson

Executive Member
Joined
May 21, 2018
Messages
7,814
There's an African saying: "Ver van jou goed, nader aan jou skade."

Loosely translated as "Your chances of losing / making a loss on an asset is directly proportional to the distance between yourself and the asset."

How far are you from 'toti?
 

dyllindd

Well-Known Member
Joined
Nov 9, 2012
Messages
235
There's an African saying: "Ver van jou goed, nader aan jou skade."

Loosely translated as "Your chances of losing / making a loss on an asset is directly proportional to the distance between yourself and the asset."

How far are you from 'toti?
Dankie. Ek is bekend met die gesegde. Ek is gebaseer in Johannesburg.

Ek neem aan 'n betroubare agent in so geval is dan nie 'n opsie nie?
 

RonSwanson

Executive Member
Joined
May 21, 2018
Messages
7,814
Dankie. Ek is bekend met die gesegde. Ek is gebaseer in Johannesburg.

Ek neem aan 'n betroubare agent in so geval is dan nie 'n opsie nie?
Johannesburg is 'n bietjie te ver van 'toti (vir my persoonlike risiko eetlus, joune mag verskil). As daar nie betogers is wat alles sal afbrand, is daar wel diewe wat alles sal steel. En dan is daar huurders wat alles sal belowe, todat hulle ver weg is.
'n Omheinde gemeenskap, of miskien deeltitel is definitief meer aanvaarbaar sowat sekuriteit betref, maar onthou, die mense wat gewoonlik in hierdie soort leefsituasies koop en self in bly, wil darem ook kan normale lewens lei, en nie altyd vir raserige bure / vakansiegangers te moet vermaan of klagtes in te dien nie.
Miskien is daar deesdae agente wat wel genoeg belangstelling sal he om om te gee,, en wat tussen goeie en slegte huurders sal kan diskrimineer, maar die probleme wat ons in ons land deesdae beleef is baie wydlopend, en ek is bevrees dat so 'n agent nie meer onstaan nie.
 

saturnz

Honorary Master
Joined
May 3, 2005
Messages
17,283
I'm not familiar with the area, but no

The apartment is currently listed on booking websites so might not have to work so hard to get it marketed. It comes fully furnished and has been renovated.

sounds like an airbnb gone wrong
 

Brenden_E

Executive Member
Joined
Aug 30, 2006
Messages
7,369
Good Day Everyone,

I sincerely hope that you are all keeping well.

What are your thoughts on buying coastal property? Is it still a good investment?

I am considering a beachfront apartment in Amanzimtoti. This would be to vacation there myself and rent out. The apartment is currently listed on booking websites so might not have to work so hard to get it marketed. It comes fully furnished and has been renovated.

I am aware of the increased maintenance needs of coastal property and the plan would be to purchase in an apartment block so that I only need to worry about interior issues and maintenance.

Thank you in advance.
You won't be renting it out frequently, so unless you are happy for it to be empty 99% of the time don't. The industry is practically dead because of Covid.
 

Polymathic

Honorary Master
Joined
Mar 22, 2010
Messages
22,666
Good Day Everyone,

I sincerely hope that you are all keeping well.

What are your thoughts on buying coastal property? Is it still a good investment?

I am considering a beachfront apartment in Amanzimtoti. This would be to vacation there myself and rent out. The apartment is currently listed on booking websites so might not have to work so hard to get it marketed. It comes fully furnished and has been renovated.

I am aware of the increased maintenance needs of coastal property and the plan would be to purchase in an apartment block so that I only need to worry about interior issues and maintenance.

Thank you in advance.
I'm not about the market post the outbreak of covid but prior to that flats in Toti where overpriced they seemed to priced at perceived future value of the property than the actual value of the property as a result value growth on these properties vs your initial investment would be slow or non existent if your bond interest rate is on the higher side.

Although this could be the reason why the flat is for sale and the initial investor wants out, so there's a chance it's a good deal.

Property 24 has good tools to see property trends and historic pricing in a specific area, you can probably find the previous selling price of that specific property too.
 

dyllindd

Well-Known Member
Joined
Nov 9, 2012
Messages
235
I'm not about the market post the outbreak of covid but prior to that flats in Toti where overpriced they seemed to priced at perceived future value of the property than the actual value of the property as a result value growth on these properties vs your initial investment would be slow or non existent if your bond interest rate is on the higher side.

Although this could be the reason why the flat is for sale and the initial investor wants out, so there's a chance it's a good deal.

Property 24 has good tools to see property trends and historic pricing in a specific area, you can probably find the previous selling price of that specific property too.
Thanks. Previous selling date was in 1996 with no price available on Property24.

I agree with you on perceived value vs actual value. These apartments always seem overpriced.
 

HunterNW

Honorary Master
Joined
Oct 21, 2014
Messages
19,666
Thanks. Previous selling date was in 1996 with no price available on Property24.

I agree with you on perceived value vs actual value. These apartments always seem overpriced.
Stella Maris woonstelle ?
 

chrisc

Executive Member
Joined
Aug 14, 2008
Messages
9,748
I know FA about Amanzimtoti, but coastal properties in the Western Cape have increased by leaps and bounds.

Have a house in Betty's Bay Extension no 2 in Albertyn Drive for which paid R900k in 1999. Through the years the offers from Estate Agents (often cash buyers) have increased from R2m to R5,5m. In the last 8 months, three offers above R5.4m. The tenant is terrified that I will sell, they have been living there since 2009

No close neighbours, wonderful views. It does tend to blow hard from October to March

1627541691649.png
 

Coasti

Expert Member
Joined
Sep 27, 2008
Messages
1,459
Rather invest the money elsewhere and use the proceeds to go on holiday. Lower risk, more flexibility.
 

WollieVerstege

Senior Member
Joined
Jun 1, 2016
Messages
832
A holiday home was nice when the kids were in the house. We always went to the same place and they had their same holiday friends every time we went.
Now that they are out of the house I really want to explore more. Probably end up selling the holiday place and use it for diesel money.
 
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