Owning a property is very expensive. Every property owner or investor will tell you so. There are many hidden costs which are completely unrelated to the cost of borrowing money. The mortgage repayments are historically shown to be (depending naturally on the Cash Rate at that time) to be only about half of the total cost of holding a property. The other half includes all of those items that one does not always think about such as maintenance, insurance, council rates, land tax, services to property etc. Expensive!
Now regarding the utilisation of the property (assuming that a liveable dwelling exists on the property), an owner have three options: 1) live in the property yourself 2) install a long-term tenant in the property 3) use it as a short-stay location. With regard to the cash flow of the exercise, the first two options will very likely make the property negatively geared i.e. the owner will need to put in extra cash each month since the income received is less than the expenses. The third option can however make the property cost neutral, or in some cases, cash flow positive in that there will be something left over at the end of the month. But in order to achieve that, the owner will need a good supply of quality enquiries for short term accommodation. Typically an owner will need to have an occupancy rate in excess of 65% in order to outperform the second option of installing a long term tenant (depending on whether the owner chooses to self-manage either the long or short term tenants).
We have a proposal for you. We can help with either managing your property as a short term location or finding you that quality supply of leads, or potentially both. List your property on our website.
Please let us know if you are interested in listing your property as a short-stay location. Just fill in the few details listed below and we will contact you.
Form for Property Owners