If you have every daydreamed about getting into holiday rental property investment, a question that will no doubt arise is where to buy a beach house. Here in Cape Town, South Africa, beach houses are highly-sought after. This makes a lot of sense, when you consider that the Mother City is famous for its world-class beaches. With not one but two oceans surrounding this popular tourist hotspot, finding a destination to purchase a beach house is not too difficult. The challenge lies in knowing which area is the best choice for your investment.

In this comparison guide, we take a look at the major beach regions across the Cape, to see how each of them stacks up as an investment choice. This guide will help you make an informed decision, so that you can decide where to buy a beach house in an area that is best suited to your specific goals.

Wondering Where to Buy a Beach House?

Indian or Atlantic Ocean coastline? Camps Bay or Kalk Bay? Clifton or Bakoven? With so many outstanding choices out there, the hardest part about investing in beachfront property is choosing which area is right for your needs. One way to help you make this decision is to think about your ultimate goals. Are you buying beach property to use for your own holidays, or are you serious about turning it into a short term rental investment? Depending on your answer, your choice may be very different.

First, let’s have a look at the two primary coastal regions in the Cape – the Atlantic Ocean and the Indian Ocean. Some points to consider when deciding which coastline you prefer include the following:

• Atlantic Ocean destinations include some of the most sought-after areas in the city. Major tourist hubs include Camps Bay, Clifton, Sea Point, Green Point and Bantry Bay, along with Bakoven, Lllandudno and Hout Bay, and the Northern Atlantic areas of Blouberg and Milnerton to a slightly lesser degree. Rental rates along this coastline typically fall into the higher spectrum, and booking rates are generally higher in this area, too. If you plan to turn your investment into something that offers long-term growth, then this coastline is a good choice.
• Indian Ocean destinations include the relaxed areas of False Bay. Key suburbs along this coastline include Muizenberg, Fish Hoek, Kalk Bay and Simon’s Town to name just a few. While not as busy as the Atlantic Seaboard, this area is often seen as an affordable option for families visiting the Cape. Properties here have a lower rental rate, and a lower booking rate. If you are seeking a beach house for your own use, or one to use as a hobby venture, then this area offers a cost-effective entry into holiday rental investment.

Now that you have a better idea of what the two oceans have to offer, the decision on where to buy a beach house should be getting a little easier. After all, at least now you have a general idea of which side of the ocean you’d prefer to be. The next step is to decide on a specific area. Assuming that you are serious about holiday rental property investment, let’s say that you have decided on the Atlantic Ocean coastline. Some of the top areas that you may want to consider include the following (click the link in each area to view detailed area guides for each suburb):

• Camps Bay. Arguably one of the most sought-after beach destinations in South Africa (possibly even the world, if you take into account all the travel awards the area has amassed), Camps Bay is home to a Blue Flag status beach, a bustling beachfront dotted with trendy cafes and beach bars, and some of the area’s most exclusive properties. Due to its abundance of beaches and leisure attractions, along with its proximity to the CBD and nearby landmarks, Camps Bay has become a mecca for holidaymakers, honeymooners and various other travel markets, both domestically and globally.
• Clifton. Home to some of the most expensive real estate in the world, Clifton is an upmarket beach suburb that attracts large numbers of visitors to its breath-taking shores. There are four beaches to be found here. Properties that lie directly on the beach are rare but they do exist – these properties are the most sought-after of all. Even if you can’t find a beach house right on the sand, you will be able to find flawless villas overlooking the ocean. For serious investors with a higher budget who are considering where to buy a beach house, Clifton offers untapped potential.
• Bakoven. Equally exclusive, but perhaps just a little quieter is Bakoven. This sheltered suburb offers all of the advantages of the Atlantic Seaboard (beautiful beaches, tranquility and a central location), without the hustle and bustle of Camps Bay’s restaurants and shops. As it is primarily a residential area, it appeals to honeymooners and travellers seeking a tranquil destination for their holiday. Properties here include modern apartments as well as contemporary villas and classic bungalows.

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At the end of the day, it often boils down to finding properties in your budget that more or less fit your requirements. But, if you do need to make an informed decision on where to buy beach a beach house, we hope that these tips come in handy.

What is the best way to get the most from your investment once you have purchased a beach house? Short term rental management is without a doubt the most effective way forward, providing you with everything you need to take your beach investment to the next level. Here at Totalstay, we offer a full service approach that incorporates marketing, day to day management, bookings management and guest services. Contact us today to find out more about working with an experience holiday rental manager.