They say Yeppoon is still in the 70’s but Rockie is in the 50’s. My son loved living and working there.
Hi Jam,
Thanks for the advice.
I’d like to keep in the GC if possible and yes was considering an actual house in the hinterland, make it more of a unique experience with less competition.
I have been thinking about using some software to look at rental demand / occupancy rates by location or post code - has anyone used anything similar to this https://www.airdna.co/ ?
Also keep in mind that if this is your strategy to buy more and more, most banks don’t accept airbnb income as income- and they actually view your airbnb incomings as 0. We recently wanted to make a purchase and have two properties which are on airbnb- our bank saw our expenses associated with these properties and 0 income- so we didn’t have enough income to borrow more. Yes it’s ridiculous (especially given our airbnb income is at least 2.5x normal income) but as banks continue to tighten lending, it’s definitely something to remain cognisant of.
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Banks are different, some take half the income.
Between the market you’re buying in AND your lack of experience I didn’t think this could get any worse, but then you added INTEREST ONLY LOAN.
Do you have other non-STR experience investing in property?
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Surely this is going to depend very much on what country you live in. Which is…?
Yes it does. It applies in Australia- which is where this poster is located, hence the comment
I asked because I also live in Oz and didn’t realise that was the case (I own my home with the AirBnB part). Was it an interest only loan? I guess they are looking for any excuse not to use them up given they are limited now. Do you know if this is a recent development? I’d hate to be someone who took out an I only loan 3 years ago for an AirBnB place and then looking to refinance if the income is no longer counted.
If you were just setting up, how would you demonstrate potential income? At least with a LTR you can get a rental assessment on the possible return. With STR, one crappy review puts you at the very bottom of the enormous number of available rentals on the Gold Coast.
In my area there are only 35 STR and of those 4 of the 19 entire homes are mine. I have no problem getting bookings in my small pond, but competing in that ocean would genuinely terrify me.
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I think it is a recent development - for a purchase we made in July 2017 Airbnb income was fine, or rather they were happy for us to just show a statement from an agent saying how much rent the place could make (even though it was on Airbnb). For our most recent purchase (which started in January 2018), they wouldn’t count Airbnb income, so we had to put it back on the LTR market, and show rental statements and then they would allow us to borrow - it was the difference between borrowing $0 and enough for another purchase . It was the same whether we were IO or P&I. As someone else said, I’m sure it’s not all banks but it definitely was for the ones our broker looked at for us !
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What a schemozzle for investors refinancing!
Hi yes,
I buy reno and sell houses also. I’d choose to get the loan amount as low as possible to start to help with Cashflow, then re-evaluate after 2 years.
Why do you suggest it could not get any worse?
It sounds like the ROI would be practically non existent, that’s why.