The Southern Suburbs and False Bay are fast becoming holiday favourites and the holiday home market is growing.
What attracts visitors to rent in this area?
The Southern Suburbs and False Bay are fast becoming holiday favourites, particularly with the increased accommodation available as owners choose to rent out their personal homes over peak times. False Bay has the same drawcards as the Atlantic Seaboard: top class restaurants, beachfront accommodation and local events catering for visitors. It also has the advantage of being less busy than typical tourist destinations such as Camps Bay, so traffic isn’t as bad and you’re more likely to get a table when going out to eat. The warmer temperatures of the Indian Ocean are also great for families with kids who are keen to swim or surf.
Ian Solomon: CEO, Portfolio
What types of properties are most in demand for holiday rentals?
The majority of people want a modern holiday home with a pool and a view. Families and friends get together over the festive period, so larger homes (five bedrooms and up) with pools are in demand; while the chilly winter months see couples looking for a quiet weekend escape at a cosy destination with a fireplace, hot tub or Jacuzzi. Holidaymakers interested in False Bay and the Southern Suburbs are close to Cape Town’s beaches, pristine nature, and wine farms, and get the same four or five star luxury as the Atlantic Seaboard but often at a third of the daily rate.
Elmarie Horak: Co-owner, Cape Holidays
What kind of return can investors expect?
Holiday letting is a brilliant way to make extra money, for the homeowner, for the owner of a holiday property that is not being properly utilised, and for any furnished property in a holiday destination location such as the Cape. You don’t necessarily have to have a five star mansion, you can even get a good return on an average three-bedroom home or apartment. You can expect to get 100% return over the high season, but obviously in the mid to low seasons this drops down to about 30%. To combat this, we then rent out homes for short-term periods at a monthly rate.
Arthur Faulkner: Principal, Cape Sky Realtors
This article originally appeared in Neighbourhood, Sunday Times.
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