When buying a vacation home, it’s important to consider what this investment can offer you. Some of the world’s most discerning investors will tell you that there is no such thing as a bad real estate investment in South Africa, due to the resilience of the real estate market they have. However, there are pros and cons to buying or investing in property in Knysna.
Let us see the benefits of owning a vacation home in Knysna:
A vacation home can function as a permanent residence once you have retired. During your vacation in Knysna you will have made some good memories and probably made some friends.
By owning a vacation home, you will save a substantial amount of money on the cost of vacation accommodation. You will also have the opportunity to decorate your home to your liking and invite friends to stay.
A vacation home offers you the opportunity to earn extra income by renting out your property. If you buy to rent, be sure to do adequate research on the area’s rental market and seek legal advice when drafting your lease.
· A vacation home serves as collateral for other debts, which means banks will see you as a creditworthy customer if you seek a loan.
When you invest in a vacation property, it’s important to make sure that you’ll be using the house, flat or apartment frequently or, if you’re renting, you need to make sure you can make monthly payments even when you don’t have a tenant. Here are some of the issues you may run into when owning a vacation home:
· Bonus payments on a vacation home can drain your finances.
· Vacation homes need a lot of maintenance, especially when located on the coast.
· Most home buyers look for a property with an ocean view. These views are not preserved and could reduce value if removed.
· Vacation homes are much more difficult to sell in times when the real estate market is not favorable.