Time to in­vest in coastal prop­erty

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RIS­ING IN­TER­EST Prop­erty prices in many coastal ar­eas have sta­bilised and in some in­stances are even start­ing to rise again, mostly on the back of in­creased in­vestor in­ter­est. “And this, it seems, is not con­fined to fash­ion­able coastal re­sorts,” says Berry Everitt, MD of the Chas Everitt In­ter­na­tional prop­erty group, “but also fo­cused on pic­turesque small towns where free-stand­ing seafront homes can of­ten be had for less than a quar­ter of the price of sim­i­lar prop­er­ties in Umh­langa, Her­manus or Plett.” Writ­ing in the Prop­erty Sign­posts news­let­ter, he says higher prop­erty prices in Gaut­eng, Cape Town and other big cities make it much more dif­fi­cult for the in­vestor seek­ing a re­tire­ment in­come to ac­cu­mu­late a port­fo­lio of rental prop­er­ties. “How­ever, a more pow­er­ful rea­son is that im­proved prop­er­ties in smaller coastal towns cur­rently of­fer re­ally ex­cel­lent value for money — and the real prospect of sturdy growth.” Everitt says new leg­is­la­tion re­cently drafted by the City of Cape Town, pro­vid­ing a zone along the Cape coast­line in which no fur­ther de­vel­op­ment will be al­lowed, pro­vides a clear in­di­ca­tion of how and why this will come about as prices of ex­ist­ing homes rise as de­mand in­creas­ingly ex­ceeds sup­ply.

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