Units purchased for Airbnb ?

Hi , I have considered purchasing a unit or two on the Gold Coast for Airbnb letting .
I've rented a room out in my house on Airbnb so I think I know the routine .
I was considering purchasing an investment place not necessarily on the coast but the returns don't thrill me lately .
I would return and live on the coast.
Close by to Airbnb units .
Location central , Broadbeach or Burleigh probably . Mermaid maybe .
Would definitely need to hire a cleaner .
What do people think ? Cheers

 

It's not a bad option.

My wife owns and operates an Airbnb management company on the Sunshine Coast (Coolum up to Noosa) and her owners see some pretty awesome returns.

The other kicker is that most of the owners are from Syd/Melbourne so can block out dates that they'd like to stay in their property.

If you proceed with it - it might be worthwhile using a management company. Especially if you're based interstate.

Cheers

Jamie

 

@Jamie Moore interested in what is invovled in an Airbnb management company! Able / willing to share some insights? Or should I just Google it?

 

Hey @Hamish Blair

Everything's on their website.

They do everything. Create the listing, manage the bookings, arrange cleaners, greet the guests, etc.

Cheers

Jamie

 

Thanks Jamie ,
My intention would be to
Live close by .
I was living in Broadbeach for a few years .
I think I can handle bookings .
Been doing fine renting out a room .
I would not attempt cleaning them myself .
Cheers

 

@PatsyStone If you do live close by and are quick, I would recommend cleaning. We make a loss on our cleaning every time, as we outsource it (we live in a different city), compared to receiving extra cash for cleaning yourself.

 

Hi Jodes , I'm not opposed to cleaning but have health problems .
I could manage some but not all cleaning .
Cheers

 

I bought an apartment with the aim to airbnb it. Its been going well so far (9 months in). I would recommend two main things:

1. Crunching the numbers so that you can be sure its worth your time and effort. I would recommend aiming for at least double what a normal yield would be.

2. Having a backup plan or exit strategy in case it doesn't work out for whatever reason. In my case, it was the type of apartment I wouldn't mind living in as a PPOR (I otherwise rentvest)

 

i 2nd this.
only input i can add is before you buy a property do it (strata units), make sure you go through the by-laws, especially those that are owner occupied heavy. in the few that i know of in sydney & modern properties have include by-laws that no short term lease/airbnb will be allowed. so make sure you do your due-dilligence before you buy.

 

Net or gross?

 

I use gross, but it doesn't make that much difference as long as you compare like for like. I.e. gross v gross or net v net.

 

Thanks James ,
Definitely a need for Airbnb management .
I would manage myself .
Had experience.
Cheers

 

buying a unit for air bnb sounds like a bad idea to me. sure, cashflow might be nice but if you buy something with a bit of land, the cap gains will more than likely outweigh the extra cashflow from air bnb unit, with much less work..obviously a generalisation, and sure some will be targeting cashflow.. but still..

 

I live on the coast. I don't like it. Certainly in your main home as you lose a portion of your capital gains.
. Better in am IP but every man and his dog is doing it on the coast and the returns are poor. Better close to beach. Some people are renting double rooms out for $40 a night minus ex's. Nothing left

 

Make sure the unit has development approval for short term letting and also complies with building code regarding short term letting before you buy