AIRBNB property to invest

Discussion in 'Where to Buy' started by mkscor13, 21st Feb, 2022.

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  1. mkscor13

    mkscor13 New Member

    Joined:
    21st Feb, 2022
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    Location:
    sydney
    Hi there everyone

    my budget is 800k, Im currently looking for some properties to invest for AIR BNB purposes. So far the Gold Coast is of my interest.
    Does anyone know any particular places i should focus on ?
    I have looked at oxenford but just not familiarized with any surrounds.
    Would Orange in NSW be a choice ?
    Please let me know what you guys recommend
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Airbnb needs high demand. By local and international tourists arriving by road or airports. Airbnb needs more active management and involvement than a passive rental. Can often but not always be supported by a specialist PM but then expect a higher fee. eg changeover, linen etc. On the GoldCoast you want a suitable building that will allow it, and remember the up to $8K Gold Coast tax on short stays (not guranteed for approval) if the strata allows it !! Proximity to "things" helps demand. Tourists use map in apps to find location and wont want to be inland. Sunshine coast etc. Avoid going too far north due to insurance and cyclone impacts. Dont underestimate a view from a balcony to sell the dream but avoid a west facing view. Sunshine Coast is a good Plan B from Colloundra all the way up to Alexandra headland.

    Oxenford only appeals to theme parkers who will stay 2-3 days and move on. Most people stay longer and pay more on coast and happy to get to theme parks other ways and have a beach nearby

    Borders just reopening today so expect as tourism returns so will loads of property that used to be short stay listed. Make it stand out. Using multiple internationally known platforms can assist eg Booking.com, airbnb.
     
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  3. Todd

    Todd Well-Known Member

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    Location:
    Canberra
    I run properties on Airbnb in Canberra (where I live). Here are some things to consider:

    -10-15k to fully furnish and equip the property (apartment). You will need plenty of linen as well.
    - think carefully about bedding and rollaways etc - you need to know your target market well
    - do research on Airbnb to see what your place would rent for and how high you think you could the occupancy rates could be. You need more than just holiday people in peak times or figures don’t add up. A good spot in a big city is better than a regional.
    - management fees generally 17% which does not include cleaning (but might include laundry). Cleaning around $140 each time (2 bed/2bath) depending on size of apartment
    - when things break down, remember they need to be fixed immediately not in 2-3 days and that can be costly for tradesman on weekends etc. So get a modern place that doesn’t need too much maintenance
    - you need to carefully consider entry and exit of guests. Look at stairs, key access (can a lockbox be accessed out of hours?), lighting, disturbance to neighbours, parking to get keys, lift to take bags to apartment etc etc- needs to be easy and minimal disruption to long term tenants. Also consider noise for neighbours - better to find an apartment that could be on the end or side of building with a more private type balcony
    - location is huge / walking distance to a patrolled beach is massive on GC. Close to restaurants etc a bonus
    Do all the figures carefully because if you don’t do any management, maintenance or cleaning yourself I would be surprised if it is worth it - but could be in some situations. Standard rents are rising around country making short term rentals less attractive.
    The Airbnb booking system is a great system and very guest/host friendly for bookings, payments etc.
     
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  4. thatbum

    thatbum Well-Known Member

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    As a long time airbnb host, I would agree that the most important takeaway is that it is often not worth it overall, and you need to be very careful in the specific property and area that you try this in.

    Plus there's loads of potential legal issues with planning compliance.
     
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  5. spoon

    spoon Well-Known Member

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    Totally agreed. Particularly we still have COVID.
     
  6. There

    There Well-Known Member

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    1st Feb, 2018
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    Location:
    NSW
    I suppose most people are attracted to Airbnb coz it allows you to use the property, at the same time it bring you income. Looking from that perspective, AirBnb is definitely attractive...

    As per my reading on this subject I saw two main issues,

    1. If you are buying regional or GC, the growth may not be great

    2. Most of the good houses with great views etc are crazy expensive! Over 2 mil.
     

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