Many clients ask me; “Where is the best place to buy for short-term rental returns”? During this COVID-19 pandemic it is important to watch the trends across Australia and New Zealand as borders will inevitably open and investors need to be ready as Australia will be regarded as an international “safe-haven”.
According to Core Logic, the combined capital city preliminary auction clearance rate came in this week at 72.4 per cent, the highest preliminary clearance rate recorded since early March. In comparison, last week recorded a preliminary clearance rate of 67.3 per cent. This time last year, a final clearance rate of 70.7 per cent was recorded across the combined capitals.
Auction activity remains low across Melbourne this past week with just 11 homes taken to auction. To date, all 7 were successful. Over the previous week, 13 auctions were held across the city, while this time last year, 1,020 Melbourne homes were taken to auction. While we see a current mass migration north to Queensland, it’s is important to remember that Melbourne is both a big corporate and sporting capital of Australia. Events like to ALF, the Grand Prix, Melbourne Cup and Australian Open are all very popular with both domestic and internationals alike. Even through-out the COVID-19 pandemic we experienced near 100% occupancy for short-term rental property in suburbs like St Kilda, Prahran and Fitzroy.
These local area “Hot-Spots” (pardon the pun), offer close proximity to shops, cafes, restaurants, parks and beach-front walks. Locals look for short-term rental solutions when they are in-between property settlements, are renovating or have to make an urgent move because of an insurance claim.
The benefits of buying your own short-term rental property and listing it on platforms like Airbnb or HomeAway/Stayz is that you can use it yourself by blocking dates on the calendar for your own stay or for visiting friends and relatives.
If you are looking to increase your property portfolio for pandemic-proof returns, talk to AirDesign about our property buying and advocacy services and take the leg-work out of finding the right place.