Do That Many people really pay to stay in the Burbs??

Discussion in 'Airbnb & Short Term Letting' started by Big Aussie, 27th Jan, 2020.

Join Australia's most dynamic and respected property investment community
  1. Big Aussie

    Big Aussie Active Member

    Joined:
    17th Aug, 2016
    Posts:
    31
    Location:
    Perth
    I've been surprised by the number of people I know turning suburban houses into AirBnBs. These are "family homes" in areas where there is plenty of rental demand, and they could probably get $500 a week. Eg: Padbury, Woodvale etc.
    These locations have nothing much to recommend them to as "tourist destinations." They are close to the train-line and freeway, so make good dormitory suburbs.

    I'm trying to get my head around what is attractive for AirBnB patrons. I have my eye on an apartment in a quiet beachside suburb. It's about 900m back from the beach. Is that an attractive proposition, or is it better to be closer to the city and closer to the train?
     
  2. Shogun

    Shogun Well-Known Member

    Joined:
    26th May, 2018
    Posts:
    1,262
    Location:
    Perth
    Random thoughts
    900m I start to think about length of walk. I did it this morning to local shops. Might be a little fair for some.
    Tourists from overseas love the beach but unit would need to be close to regular public transport with direct routes.
    Beach loses appeal in winter.
    Is it close to shops and food and drink etc
     
  3. significance

    significance Well-Known Member

    Joined:
    6th Sep, 2019
    Posts:
    164
    Location:
    Queensland
    Some travellers are looking for somewhere to stay while they visit family or friends - parents of university students, for instance, will find accommodation near the university attractive.
    Tourists on a budget may find it convenient to stay out in the burbs in an area with good access to train lines to the city -- I've done that myself visiting Paris.
    Business travellers also sometimes look to B&B as an option. Universities and CSIRO sites, for instance, are often in the suburbs, but always get many visiting academics and scientists.I'm sure other industries that are located further from popular tourist sites also get business travellers.
    Other travellers specifically want to stay away from the tourist areas to soak up the local atmosphere and get a better feel for a foreign culture and how people really live.
     
  4. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,029
    Location:
    Perth, WA
    You're talking about quite different demographics in terms of potential guests.

    As others have mentioned, 900m seems quite far back for a beach retreat. Why would a guest go for yours if there's lots of others much closer to the beach?

    I have an apartment on airbnb in fremantle. And I did extensive research into prices, supply and demand before I pulled the trigger on it.
     
  5. Big Aussie

    Big Aussie Active Member

    Joined:
    17th Aug, 2016
    Posts:
    31
    Location:
    Perth
    Sorry if I wasn't clear, but that's my question. What is the demographic and the drive for people staying in the burbs??
    The property to which I'm referring would be exactly that, a place in the burbs.
    but just in a spot thats a little "nicer". But for example would I be better off with somewhere further from the beach but closer to the traino?
     
  6. spoon

    spoon Well-Known Member

    Joined:
    17th Nov, 2016
    Posts:
    1,014
    Location:
    Time-dependent
    Check with the Body Corp before going ahead. I know some apartment owners got caught when the Body Corp said no to their endeavour.
     
  7. Onyx_OCAU

    Onyx_OCAU Well-Known Member

    Joined:
    11th Jan, 2021
    Posts:
    195
    Location:
    NSW/VIC
    If travellers are arriving by car, a short term stay/airbnb in the suburb is not that big of a deal. Any place worthy of visiting on vacation is a short drive away, presumably no issues with parking space - which can be an issue in holiday hotspots or city/CBD areas.

    People who don't know how to pack light might require more household space to unpack their luggage and require the bigger living spaces afforded by a house in the suburbs further out from the destination's attraction(s).
     
    significance likes this.
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,146
    Location:
    Sydney
    Depends where. A bland residential suburb off transport links with nothing nearby isnt going to be well demanded. A quiet unit two street back from a beach and with transport access might be exactly what someone wants rather than real close to beach and zero parking, small, noise etc. A km back from the beach is a fair distance. Bus route ? Parking ? Shops ? .... Airbnbs tend to be searched by map and proximity. But if its a stand out and spacious etc with off street parking it may be more appealing. Eg include bikes ? Mention bus at door etc. Do you want longer stays - look at the LOS pricing model too where you can discount longer stays or super short stays to fill gaps etc