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  • 5 reasons to invest in London property for Airbnb

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Dated:
Mar 13, 2023
Read Time:
Topic:
Development

5 reasons to invest in London property for Airbnb

Investors just starting would be wise to consider Airbnb as a significant source of passive investment income. While many Airbnb investments make sense, it's important to remember that not all of them do. It's not even close to being the same thing. You are operating a rental company when you buy a house to rent a room or the whole place through Airbnb.

Properties like this are ideal for short-term rentals since the owner can accommodate a large number of visitors in a small amount of time. However, owners of conventional investment properties can find a conventional long-term renter. Consider the effects of all outside circumstances on your real estate investment before committing to purchasing an Airbnb short-term rental property or participating in an Airbnb investment fund. Some of the more important ones are listed below:

Better investment flexibility and control:

Airbnb properties provide more control and flexibility than other investments, such as equities and bonds. If the property's worth has increased dramatically, you may sell it or increase the rent during peak and off-peak seasons. As a bonus, this tactic can help you lessen the likelihood of being stuck with a troublesome renter in the long run.

Unique real estate saw a rise in demand:

As domestic tourism takes a hit from the epidemic, tourists are looking for destinations that might give them a chance to unwind and something completely different. Because of this, bookings at Airbnb establishments like treehouses and farm stays became increasingly popular. Accommodations like this give visitors a welcome respite and an incentive to explore the surrounding area.

Demand drives supply:

The need for temporary housing has skyrocketed due to the growing trend toward greater freedom in scheduling at work and home. Airbnb has surprisingly recovered practically and innovatively after what felt like the end of the world for the company. At the start of the epidemic, investors saw a shift in population toward the suburbs and acted accordingly. There has been a gradual return to the cities, and it stands to reason that investors will follow suit.

High potential for passive income:

It's a great way to generate passive income for homeowners like a regular rental. Short-term rentals, like Airbnb, may not provide the security of a regular monthly income, but the large sums of money they bring in more than makeup for this. Typically, their monthly income is three times higher than a standard rental.

Accumulation of wealth over time:

Whether you invest in long-term or short-term rentals, your money will grow. In contrast to bonds and stocks, which rise and fall with market conditions, it is one of the few assets guaranteed to increase in value over time.

The best area for Airbnb in London:

• Kensington:

Look no further if elegance and refinement are what you seek; we have them in spades. The aesthetic appeal of this Kensington, London mews flat is undeniable. You'll get the best of both worlds with this Airbnb, full of antique and old charm yet sleek and contemporary.

• Hackney's little house:

There are also charming hidden jewels, such as this lovely Hackney, Greater London, tiny home. Sure, from the exterior, it could be mistaken for a crematorium, but you can't judge a book by its cover, as the saying goes. The Airbnb's decor is ultra-modern and stylish, but it avoids becoming ostentatious. It includes a king-sized bed, so two people may sleep comfortably, and all the amenities of a standard room, but on a more compact scale. It's a fantastic bargain, especially compared to other hotels in London.

• Archway's lavish loft residence:

This property in London is just one example of the city's abundance of high-end housing options. Close to Finsbury Park and multiple subway stops, this London Airbnb is ideal for exploring the city. The room is airy and contemporary, with exposed brickwork for an industrial feel. Enjoy the quick Wi-Fi, two flat-screen TVs, and picturesque neighbourhood views from the room's big arched windows. The loft has a double bed and two singles, perfect for small families or groups of friends.

Best place for Airbnb investment in the UK:

The United Kingdom, home to several well-known metropolises, is consistently ranked among the world's top 10 tourist destinations. Travellers come from around the world to see its thriving cities, gorgeous countryside, rich history, cultural offerings, delicious cuisine, and stunning natural scenery. There are also several fantastic Airbnb markets there that provide excellent returns on investment. Here are the top Airbnb investment markets in the UK.

• Bradford

• Swansea

• Plymouth

• Birmingham

• Manchester

• Liverpool

The best type of property for Airbnb:

There is no doubt that this is why real estate investors choose to put their money into an Airbnb apartment building rather than a house. Apartments tend to be less expensive than houses in the same area, as the location is the primary factor influencing rental property rates. It is recommended that Airbnb hosts purchase a home in a busy place close to public transportation, restaurants, and attractions, to increase the likelihood of a successful business.

Buying a home in a prime location may be financially risky due to the higher initial cost, higher monthly payments, and higher tax and mortgage obligations. Compared to buying a house for Airbnb, purchasing an apartment is more cost-effective while still producing comparable rental revenue. Investing in an apartment is preferable since it allows the investor to reach profitability quickly.

Conclusion:

Before investing in an Airbnb investment property, it is essential to conduct thorough market research. Before maintaining funding for an Airbnb rental business, several external factors should be considered. Think about how the COVID-19 epidemic could influence vacation rentals.

The epidemic has severely impacted the tourism business in its first two years. Before investing in an Airbnb short-term rental property or joining an Airbnb investment fund, you should consider how outside factors can affect your real estate investment. Get in touch with us if you're in the market to purchase or lease a home, and we'll be happy to assist you in your search. The Real Property Experts, London has the knowledge to help clients with any property, whether for business or living.

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