Oct
2013
What is it that makes coastal property so attractive? Is it the lifestyle, pace of living, living expenses or just the idea that you can take a walk on the beach whenever you want to?
Or is there more to coastal property as an investment?
KZN's Dolphin Coast has in recent years proven to offer more lucrative investment opportunities in property. Two of these estates are Zimbali and Simbithi. These exclusive developments have attracted foreign investors along with local investors and residential property. For foreigners the attraction is affordable living with exclusivity and the weather on the Dolphin Coast. These exclusive estates cater for a niche income segment, where bond repayments alone are sometimes in excess of R 35 0000.00 a month. The less exclusive properties are more or less in line with market norms.
The image of coastal living is of affluence, glamour and wealth. The South African coast, both east and west, is breathtaking. As the norm, properties with a view do command better prices and this may be true then of coastal property in South Africa too.
Places like Richards Bay and Stanger are supported by a harbour industry and tourism is thus a secondary source of income.
FNB's property barometer mirrors show similar trends as in Gauteng, with property values rising by between 5-6% for KZN and a less spectacular 3% for Western Cape properties year on year as at 2010.
KZN's HPI (House Price Index) has traditionally been the highest with the lowest Market Price Index.
Coastal properties are more prone to cyclic income and more so within the BTL (Buy to Let) sector of property investment. Seasonal spikes are influencing the overall picture of coastal property due to seasonal letting.
For laid-back lifestyles the coast is definitely the better option. When attending business seminars at the coast you feel as though you are on holiday, even tough you are working. To invest in coastal property is a choice of preference.
