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A new London-based online real estate agency has released global statistics to show investors they can pay off their mortgages faster using Airbnb, but does it come at a cost?
Nested.com released data suggesting landlords who use Airbnb to rent their home could pay off their mortgage quicker than those who opt for traditional rental methods.
According to Nested.com’s 2017 Property ROI Index, a three-bedroom property in Sydney can be paid off in 80 months using Airbnb, compared to 315 months it would take with a longer-term tenant.
It estimates a median valuation of US$1,013,552 for the property, with average rental per month at US$3,213 if it is rented the traditional way. But the same property could get US$12,646 per month on Airbnb.
The company used data gathered from properties sold in the last 12 months to work out the median price for the area, and the list has data for 75 international cities.
Sydney ranked 23rd on the list, with Durban in South Africa taking out the top spot. In Durban, it could take only 18 months of Airbnb rental to pay off the mortgage on a three-bedroom property, according to Nested.
Another high ranking Australian city was Perth where Nested claims it would take 85 months of Airbnb rental to pay off a three-bedroom property, compared to 286 months of traditional rental.
However, it may not be as simple as Nested’s data suggests. Australia is one of several countries facing issues listing their properties on the home-sharing database.
Short-term rentals are considered tourist and visitor accommodation by the City of Sydney council and Airbnb is banned in some residential areas.
Airbnb has also come under fire from the Australian Taxation Office and recent changes to the strata laws for short-term letting have changed the way apartments can be listed.
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