Property Investment Blog

All Posts

Holiday homes are raking in thousands per week

cashflow_small.jpgA huge rise in the number of family properties available for short term rent has seen homeowners in holiday hot spots cashing in this summer.

Queenstown and the Southern Lakes, Tasman, Tauranga, and the Coromandel all heave with swelling populations over summer months, and homeowners can make up to $4200 a week, according to research from Bayleys Real Estate.

People with residences in 'holiday' destinations could factor in five-figure returns from their acquisitions, Bayleys Real Estate national residential manager, Daniel Coulson said.

"As with any property-buying decision, factors such as the location of the residence – particularly its proximity to water – along with room configurations, amenities, and age of the premises, all play a part in establishing a market letting rate," Coulson said.

"The better these features are in a holiday home rental, the higher the lettable nightly or weekly rates."

There are more than 30,000 Airbnb and holiday home rentals in New Zealand. Airbnb's New Zealand listings have more than doubled in the past 12 months to 20,000, while Trade Me's holiday listings site, holidayhouses.co.nz, has more than 10,000 properties available.

"By aligning a personal preference for purchasing a holiday home, with the key location 'hotspots' sought through the online booking sites, property buyers can look at which locations deliver the best returns from short term lettings," Coulson says.

Seasonality was also a critical element for those with an eye on rental income – the highest rates were over the peak Christmas and New Year period.

Tauranga couple Kirsty Morrison and Aaron Davies have rented out their three-bedroom weatherboard house on Bookabach and Airbnb for just over two weeks, raking in $4000.

This festive season they left their house on December 23 and return on January 9.

While they have been away camping, at a friend's wedding, and staying in the Coromandel, their house has been making them an extra $4000.

"It's been nice to make some money, but it's also been nice to force us out of our house and make us go and enjoy the summer holidays," Morrison said.

The extra cash will go towards their wedding in April, and fixing up their house.

The pair are also enjoying meeting people from around the world.

It's not a life changing amount of money, Morrison says.

"It's not great money, because it's not regular. It would be easier to have a flatmate come in and get regular rental income."

But, it is allowing them to make a passive income while soaking up the summer sun.

"The only problem we have ever had was a Chinese grandma who took our electric kettle and put it on the element."

The grandma replaced the kettle.
Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

Related Posts

[On-Demand Webinar] How to Find Affordable Capital Growth Properties

Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs. Join us for this live webinar and learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.

RBNZ Announcement - 13 November 2019

Reserve Bank of New Zealand Announcement - 13 November 2019

[On-Demand Webinar] How to Find Positive Cash Flow Properties

Learn how to find and analyse positively geared investment properties In this webinar replay, you will learn how to find property that will pay for itself, assist with finance serviceability and provide income regardless of what's happening in the property market.