In recent months property experts have been pointing out that coastal and holiday properties have been the hardest hit by the 2009/2011 downturn and are available at huge discounts – usually said to be between 30% and 50% lower than previous boom era sale prices.
“In the circumstances,” says Bill Rawson, Chairman of the Rawson Property Group, “estate agents are completely justified in saying that now is the time to buy holiday property and that today’s prices are not likely to be quite so favourable to the buyer again.”
Reports from the Rawson Property Group’s residential franchises serving holiday areas such as Hermanus, Yzerfontein and Langebaan in the Western Cape and Amanzimtoti and Umhlanga in KZN indicate, said Rawson, that interest in holiday property is at last beginning to revive. Sales this summer, it has been predicted by Emil Weiss of the Langebaan franchise, are likely to be double those of the 2011/2012 summer.
What advice, if any, does Rawson have for those who are contemplating buying in the coastal areas?
“It remains true that proximity to the beach and/or a sea view are all-important,” said Rawson, “and these attributes do enable sellers to ask a huge premium for their properties.”
“Whether, your choice is for a high profile beach plot or simply one in a coastal area, almost all holiday properties represent really excellent value for money at the moment and, of course, they all have the added bonus of enhancing the buyer’s lifestyle,” said Rawson.
Footnote:
Bill Rawson is a ‘highly satisfied’ investor in a holiday home at the Hermanus Beach Clubwhere he has seen values appreciate at 13% per annumover 14 years now.
