Nestled close to Brisbane's central business district, the Nina Dai property enjoys a riverside stroll, in a suburb housing a plethora of lively cafes, restaurants, and bustling markets on weekends. end.
This is the ideal location for an investment property, Dai thought.
"I had always wanted to invest in real estate in Brisbane because I had been told that the market was good and that I could get a low interest rate by the time I Was ready, "said Dai, a 2018 shareholder with the property, located south of Brisbane.
"It is gratifying to know that I have worked a lot for an investment that will continue to earn me additional income over time. In two or three years, I will be able to develop my investment portfolio. "
The liveliness of the sunny suburbs and its distinct local culture have long attracted visitors to the weekend. As a result, Dai was informed that she could tap into better rental yields if she rented her property in the short term. term – a strategic decision that made all the difference for its cash flow.
In fact, since its association with MadeComfy in October 2018, the first investor has seen her two-bedroom apartment garner 26% more net income than long-term average income.
It was even despite the occupancy rate of his property that had plunged during the quieter season; culminating in 80% of his occupation from December 2018 to February 2019, then to 70% in March 2019.
"People generally think that their property should have a 100% occupancy rate, which is why they opt for long term rentals," says Dai.
"Many people do not realize that you can earn a much higher income by renting it for shorter periods and adjusting the price accordingly. The rental of my property in the short term has maximized my rental income due to the dynamic pricing strategy used. Rather than being rented 100% of the time at a lower cost, my property is booked between 70% to 80% of the time at a rate higher than the night. "
Dai's has always been about investing in the real estate market and is proud to have been able to do so in her twenties, having also taken a few years to save for the initial deposit.
Dai said that she was still saving a percentage of her current rental income on her investment portfolio, which allowed her to buy even more in the future.
"You always want to get enough return on your real estate investment. So it may be difficult, at first, to take the plunge and rent it in the short term because you know that he won. " Do not be busy 100% of the time, "says Dai.
"However, as soon as I started receiving high returns on my property, this concern disappeared."
Partnerships with Professionals
When Dai first considered managing her investment property for shorter stays, she was not convinced that she would have the time and experience to successfully manage the property and ensure its durability in a market built on the rapid rotation that was required.
Fortunately, an online search has presented it to MadeComfy, one of the leading short-term rental management companies, and has not lost sight of it since it was signed.
"MadeComfy understands what customers are looking for, which is great for someone like me, new to the real estate market. These are nice people who understand the challenges that homeowners face and offer solutions, "says Dai, who shares her experience of the platform, Airbnb's official partner.
"They have facilitated my role as landlord because they take care of the entire booking process, maintain ownership among guests and ensure that he always has the proper equipment for the guests. "
This is a partnership that has only contributed to Dai's "flawless experience" in investing in real estate, and also allowed him to adjust the nightly exchange rate of his property, so that it appropriately takes advantage of the busiest times of the year.
"It can also be difficult to know sometimes that other people are staying on your property and may be causing damage," she says.
"MadeComfy has eased the stress, with strategies in place to prevent this from happening. For example, do not give too low a price to the property, apply strict rules at home and consult customer reviews before their stay. "
Tips from a first-come
For those looking to buy an investment property and are interested in renting it in the short term, Dai recommends looking for areas located near the CBD or other popular vacation destinations.
"Make sure to invest in the style of your property, as this makes it more attractive to guests. It may also mean that you can charge a higher rate per night, "she explains.
"Sailing to a professional rental management company will also increase your rental returns."
