Ensure you never miss an issue of the
real estate business bulletin
Where’s best for paying off a home through the sharing economy?

Where’s best for paying off a home through the sharing economy?

money, time, home loan, economy, investment
by Sasha Karen 0 comments

Short-term letting and the sharing economy via services like Airbnb can offer Aussies a chance to make some money, but how long would it take to pay off a home loan?

Research conducted by peer-to-peer (P2P) motorhome rental platform SHAREaCAMPER has revealed how long it takes for a home in four of Australia’s capital cities to be paid off through ROIs by utilising share economy platforms.

With an average market price of $1,382,749.15 and a P2P rent price of $17,233.32 per month, Sydney has a yearly rate of return of 11.96 per cent, taking eight years to recoup the ROI, ranking second, beaten only by Frankfurt, Germany at seven years.

The next Australian city is Perth, ranked fourth. The average market price in Perth is $766,220.25, with a P2P rent price of $9,027.30 per month. It has a yearly rate of return of 11.31 per cent, taking nine years to recover the cost of the home.

Melbourne takes 15th place, with an average market price of $949,708.12, a P2P rent price of $8,125.66 and a yearly rate of return of 8.21 per cent, resulting in 12 years to pay off a home through the sharing economy.

The last-ranked Australian city is Brisbane at 24th spot, with an average market price of $732,380.47, a P2P rent price of $4,944.87, a yearly rate of return of 6.48 per cent, resulting in 15 years to pay off a home.

The 2017 Return on Investment Index report analysed 31 cities on various rental P2P platforms, including homes. Rankings were calculated by analysing the ratio of market to P2P rental prices for more than one thousand assets per city. The cities were then ranked by the total time needed to regain investments based on the ROI percentage.

SHAREaCAMPER CEO Florian Dahlmann said the sharing economy offers “great individual experiences as well as flexibility”.

“The biggest lesson of our research is that you don’t need to charge exorbitant rental rates to pay off your investment. We are huge fans of win-win situations like this and we hope this research encourages development in more hesitant markets,” Mr Dahlmann said.

Where’s best for paying off a home through the sharing economy?
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?