Now this was a good investment!

Discussion in 'Airbnb & Short Term Letting' started by Hetty, 21st Nov, 2019.

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

    Hetty Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    237
    Location:
    NSW
  2. NHG

    NHG Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    454
    Location:
    Sydney NSW
    "She's capitalised on her success even further by teaching courses on how to turn holiday rental ventures into a lucrative businesses."

    Curious to know how many properties she actually has.

    Or was it a one hit wonder.
    If it were to stop being profitable, can she replicate and scale the business.
     
    TMNT and charttv like this.
  3. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    4,349
    Location:
    Qld
    From the article, she is raking in a healthy six-figure income after expenses for the one property.
     
  4. Gockie

    Gockie Unicycle anywhere and everywhere... Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    10,290
    Location:
    Sydney
    Bloody good rental return. I’m amazed. I'm guessing there’s no home loan to repay given the place was so cheap to begin with. I think she hit gold because of the shack’s location.

    Re: Short stay accommodation, a fair proportion of the population could easily host if they have the inclination, it’s definitely not rocket science. And if you get sick of it, you can outsource the day to day management (if it’s not a place you yourself live in).

    Anyway, I’m staying at someone’s Airbnb in Canberra for 2 nights and I’m thinking the host would be doing well out of it since she is renting out 2 rooms this way. Basically a room rents for min. $50 a night. Easy money. And you can decide to stop hosting if it all becomes too much/you get sick of it.
     
    Marg4000 likes this.
  5. Hetty

    Hetty Well-Known Member

    Joined:
    27th Jun, 2015
    Posts:
    237
    Location:
    NSW
    No home loan because it has paid itself off several times over.

    I think it’s profitable because of social media. People would love going somewhere remote and posting pics on insta.
     
    Redwing, Marg4000 and conork like this.
  6. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    6,796
    Location:
    Canberra
    Many people (myself included) would be worried about the security aspect of allowing somebody into your house, especially if you weren't at home all the time they were. Sure, Airbnb has insurance, but it would be easy for a guest to pocket something small without you ever noticing.
     
    wylie and Marg4000 like this.
  7. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

    Joined:
    18th Nov, 2019
    Posts:
    361
    Location:
    Australia
    You could be right. She might have lucked out with one property on first attempt.
    I think the short term letting industry is very fickle.
    Everyones taste is subjective.
    We always look for AirB&B places which are obscure locations; usually "rustic", and as a result always a lot cheaper - which we want - but we dont care so much about the quality - its just a bed. I am sure not everyone thinks this way.
     
    TMNT likes this.
  8. S1mon

    S1mon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    544
    Location:
    canberra
    found another article as i didnt belive the numbers
    Running a successful Airbnb and where you can earn the most money doing it - OpenAgent
    crazy numbers..400$ a night..sheesh

     
    Hetty and Gockie like this.
  9. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    4,338
    Location:
    Melbourne
    its in my nature (and probably many others) to find holes in her plan,

    but good on her for giving it a shot and thinking out of the square

    but regardless of how many masters she has, im thinking it was a bit of one hit wonder with luck thrown in, unless shes managed to replicate it

    good luck to her
     
    Kelvin Cunnington likes this.
  10. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

    Joined:
    18th Nov, 2019
    Posts:
    361
    Location:
    Australia
    Agree.
    Always good to see people taking action, and getting rewarded.
     
  11. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    10,851
    Location:
    Sydney
    We bought a three unit holiday let that is high yield. Not in Australia and a unique summer winter destinstion. Now all four. 25% to 28% net yield and we now are raising this to 32% plus. 100,% occupancy up from close to 80%. It's just a cashflow game and time is money. Not lotto. Just a high yield investment. Hard to repeat but we will in same area.

    There are these places and they are very very specific and hard to identify. Location. location. Location

    My tip...forget about buying in a area near home. Who cares. Chase cashflow. Tax benefits mean nothing too. No depreciation no neg gearing. Just cashflow. Income beats all thst
     
  12. Gockie

    Gockie Unicycle anywhere and everywhere... Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    10,290
    Location:
    Sydney
    My neighbour had a granny flat behind their house built, no kitchen and since they first put it on airbnb a few months ago it's been fully rented. They haven't been asking for top of the range rent, I believe they can ask for more, but that decision is up to them. (He was quite amazed at what I get per night). Anyway, this is suburban Sydney. It's been people visiting other locals or even people from overseas holidaying in Sydney.

    Now they are thinking of putting a second room on the platform.