Some holiday home truths
Pay off your homeloan in 18 months with Airbnb
An assessment of value of Airbnb rentals talks up investments in Durban and Jo’burg. But it doesn’t tell the full story
Forget conventional rental — a new index says Durban investors can pay off a home in just 18 months if they ditch normal rental in favour of Airbnb. The 2017 property return-on-investment (ROI) index released by UK online realtor Nested says Durban presents the top global ROI opportunity for Airbnb investors, with Johannesburg coming in fifth. The index, which was released last month, compares average sales prices for three-bedroom homes across 75 international cities with average rental incomes and Airbnb incomes. The resulting ROI figure is expressed in months, indicating how long it would take to recoup your initial investment. Interestingly, the top five slowest ROI cities for Airbnb rentals were Asian, including Beijing, Hong Kong and Taipei, with ROI figures in the region of 508-670 months (as much as 55.8 years). Nested says in a statement that the point of the research was “to better understand global variations in real estate prices from an investment perspective”. It says ...
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