Holiday Homes in Knysna – The Pros and Cons

When you purchase a holiday home it is important to take in consideration what this investment can offer you. Some of the most discerning investors in the world will tell you that there is no such thing as a bad property investment in South Africa, because of the resilient property market they have. There are however pro’s and con’s to buying or investing in property in Knysna.Lets look at the benefits of owning a holiday home in Knysna:· A holiday home can double as a permanent residence once you have retired. During your holidays spent in Knysna you will have made some good memories and probably made some friends.
· When owning a holiday home you will save a substantial amount of money on holiday accommodation cost. You will also have the opportunity to decorate your home to your taste and invite friends to stay over.
· A holiday home offers you a chance to earn an extra income by renting out your property. If you buy-to-let make sure that you do proper research on the area’s rental market and seek advice from lawyers when you draw up the lease.
· A holiday home serves as a collateral for other debt, meaning that banks will see you as a creditworthy client should you seek a loan.When you invest in holiday property it is important to make sure you will use the home, flat or apartment often or if you are renting, you should ensure that you can make monthly payments even when you don’t have a tenant. Here are some of the troubles you might run into when you own a holiday home:· Bond payments on a holiday home can drain your finances.
· Holiday homes needs a lot of maintenance, especially when it is located on the coast.
· Most homebuyers seek a property with a sea-view. These views are not preserved and could lower the value if taken away.
· Holiday homes are a lot harder to sell in times when the property market is not favorable.