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: