Many of us dream about our retirement long before it happens. South Africa offers a huge opportunity for early retirees in that it is heavily tourism slanted and bed and breakfasts are hugely popular.
Not only do South African bed and breakfasts offer superb and affordable accommodation, they also offer the eager retiree an opportunity that may not be found in any other country.
Prime times ahead
South Africa is a country with a myriad of tourism options and, despite the recent political set backs, is set to be one of the globes top destinations in 2010 due to the hosting of the FIFA World Cup.
Add this to the favourable exchange rates and the current low property prices and you have a winning combination for investment and early retirement.
The current situation
At the moment the average South African is bowed under the high interest rates and uncertainty about political party changes and many are being forced to shed excess property and pull in their horns. It is a buyers market.
With 2010 looming, accommodation establishments are certain of a good return both in terms of occupancy and, as interest rates begin to lower in 2009, in terms of property equity.
In short, if you are dreaming of a warm climate, a good income and a solid investment, now would be the time to buy a dream bed and breakfast in South Africa, particularly in the coastal regions.
Owning property in South Africa
Anyone can buy a property in South Africa. There are no restrictions on foreign nationals buying or investing in real estate there. Some buy property as holiday homes and are termed 'swallows' as they spend the Summer in South Africa avoiding their own Winter. Those in the know rent their holiday home out during South Africa's low season to supplement their return in the Summer.
Buying a bed and breakfast or guest house offers you a business visa which is one way of obtaining permanent residency. Not only do you fulfil the Home Affairs requirement of proving you are financially stable as it provides additional income to add to your requirement of a monthly income of at least R20 000 for life, but owning a good bed and breakfast also helps fulfil the creation of employment quota required.
Identifying your bed and breakfast
Often, searching the internet can save you a lot of time and headaches as many current owners will place their own advertisements to save commissions. It is a good idea to start there and garner information from the owner. Before that step determine where in South Africa would suit you. It is a very big country. The coastal regions appear to be the best for tourism related businesses although the attraction of wildlife still draws tourism inland.
The Western and Eastern Cape is extremely popular with the milder climate and wide variety of attractions from wildlife to nightlife. Towns such as Knysna, Oudtshoorn and Jeffrey's Bay all have their own charm.
Buying Processes
In South Africa a buyer submits an offer to purchase - sometimes lower than the asking price. Most bed and breakfasts are sold as residences and do not have business rights. The fixtures and fittings are offered as a separate inventory. This ensures a buyer is paying the correct price for the bricks and mortar offering and that it is not inflated by the addition of second hand furnishings.
Some will sell as a complete package but then one must be wary of the added value to the actual property when looking to resell ie: does it over inflate the real value?
Property is sold 'voetstoots' in South Africa ie: what you see is what you get. Once an offer is accepted by the seller there is no going back.
Transfer takes about 6 - 8 weeks and duty is applicable. It is advisable that each party retain their own attorney in the process.
Things to watch out for
Ask for a copy of signed and approved building plans upfront. Many South African homes have omitted additions that could cost you a small fortune down the line. Even a swimming pool requires approved plans.
A genuine bed and breakfast will have a full set of accounts for the past trading year as well as a bookings book. Read it before you offer!
Rates in South Africa have recently been reviewed and increases have been applied so ask the owner what their new rates are on the property.
Water is scarce in South Africa so a borehole would be a bonus for a guest house as would any solar conversions eg: solar geysers
Have a good look at their online advertising. When did they last upgrade their website and other advertising material? Where are they ranked?
Interview the domestic staff. They often know far more than they should.
Choose a unique location. Position is prime so spend that little bit extra to ensure you get drive past business. An island, views, proximity to game, golf or beaches are a must.
In Summary
South Africa is a perfect country to invest in right now, especially for the fifty plus market. The prices are right and the country is experiencing growth again. In terms of life style a bed and breakfast in South Africa is hard to beat.
Copyright © 2008 Jane van Velsen. All rights reserved
Jane van Velsen - The Right Writer offers clients a full social media marketing service including researching, writing, distributing articles and posts, conversion into press releases for online distribution and to hard copy publishers, creating databases for social media use, creating website site maps, content and overseeing set up, business blogs from inception, design and content to monetising, 3rd party advertising and guest authors, sourcing articles, and linking to social media for maximum visibility online, client service between client and other service providers such as web designers and SEO experts, Pay per click advertising, Facebook advertising campaigns, review of analytics, strategic input.
http://www.therightwriter.co.uk
http://therightwriterblog.co.uk
No comments:
Post a Comment