‘The top three things that helped me reap the benefits of a rental property’

Aug 20, 2019
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This writer didn't think they'd commit to an investment property in their 60s, but here's what they learned. Source: Getty Images

I never thought I would commit to a mortgage in my 60s, but in 2016, I did just that when I put down a deposit on a one-bedroom property in South Yarra, Victoria. At the time I was also growing my business, which had an unpredictable cashflow, so I needed to create financial stability for the years to come. I knew that an investment property could offer a consistent return, so I completed my due diligence; I researched the building company, looked at the area in detail and reviewed the expected growth within the area. So far, this apartment has surpassed all my financial expectations.

I bought the property off-the-plan, which can often be a risk due to contract disputes and fluctuating property prices, but I made sure I was getting the best value for my dollar. I invested in a high-level, luxury block that would guarantee decent returns. Having settled the place in August 2018, I was then able to rent it out and begin to pay off my mortgage.

Initially, I bought the property with the intention to rent it out on the long-term property market. However, I quickly realised I could gain a much better monthly rental yield through Airbnb; potentially renting it out to different guests each week.

I was concerned about the amount of time it would take to manage the cleaning, guest requests and administration of the property, and I feared that I wouldn’t have any spare to focus on my own business and hobbies. I certainly wasn’t prepared to sacrifice my everyday pleasures. After careful consideration, I turned to Hometime, an Airbnb management company, which ensured I would have the capacity and time to focus on what’s really important.

When I started the process I was nervous as it seemed so uncertain. I now realise my rental being expertly managed by Hometime is a winning combination. It’s been very straightforward and has definitely given me a higher rental income than I would have received through a real estate rental on the long-term market. I have been able to prioritise running my business and following my passions — I rarely have to give my property a second thought. It’s a huge part of my life!

Thinking of investing in a property to rent out and create your own financial security? Here are my three top tips and learnings from my experience:

  • Do your research! Invest in a high-quality property you know will see good returns and help to pay down the mortgage
  • Look into other rental markets including the short-term market — with a high-quality property in the right area the rental return often yields far higher than in the long-term rental market
  • Consider an Airbnb manager such as Hometime who manages everything from guest request to cleaning. It has allowed me to focus on my passions rather than the nitty gritty of owning a property.

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Do you have an investment property? Do you use short-term or long-term rental strategies?

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