I have an Airbnb but it just doesn't seem to pay much?
Discussion
I've had it 6 years- seem to clear around £800/Month on average- Christmas and Summer being the bigger earners. The flat is in York.
When I work out that it needs managing and cleaning (20% commission), repairs, tax, buuildings insurance etc I wonder if there are better investments out there.
We've also moved abroad which complicates matters further.
If I was to sell it and pocket £260,000ish, what could I invest that money in??
When I work out that it needs managing and cleaning (20% commission), repairs, tax, buuildings insurance etc I wonder if there are better investments out there.
We've also moved abroad which complicates matters further.
If I was to sell it and pocket £260,000ish, what could I invest that money in??
Leicesterdave said:
£120/night
Can I stick it in a UK savings account if I don't live in the UK any longer? Also if interest rates ever go down again I'm screwed!
IINM, you will need a UK address to open a UK bank account.Can I stick it in a UK savings account if I don't live in the UK any longer? Also if interest rates ever go down again I'm screwed!
I wouldn't say you're screwed if interest rates go down, you'll just need to potentially re-position your investment. I could say you're screwed at the moment if house prices go down, or if tax rules change on BTL's, etc.
Sell it, and put the £260,000 into WiseAlpha spread it across 50+ corporates paying over 5% interest on bonds. Drip it in over a few months, then let the auto-bot balance your portfolio as and when other bond-fractions you don't own become available spreading risk further. You'll easily have more than £1k a month coming in. IF you can afford it, reinvest the income in more bonds and compound your returns.
Muzzer79 said:
I wouldn't say you're screwed if interest rates go down, you'll just need to potentially re-position your investment. I could say you're screwed at the moment if house prices go down, or if tax rules change on BTL's, etc.
Indeed. York's unlikely to get more popular than it already is (i.e. it's already very bloody popular), there doesn't seem to be too much prospect of house prices going mad again in the near to medium term, and it's doubtful that the political climate around landlords/Airbnb-type stuff is going to get more clement anytime soon. If the flat doesn't seem like a great investment now there doesn't seem to be much prospect of it getting better. But tbh without knowing what the OP's time horizons or investing goals are it's difficult to make a sensible suggestion, and it could well be that he's best off staying as he is. FWIW I usually start with the question 'Why not a low-cost broad-based equity tracker?' and go from there.
Muzzer79 said:
IINM, you will need a UK address to open a UK bank account.
For all high street banks, yes.In April 2023 we were 'invited' to close our Barclays account in the following six months, due to their being "no longer able to service certain overseas customers." We had two legacy DDs for UK insurance policies active from that account, and had used it as a debit card facility on trips back to Britain since leaving to Switzerland 24 years ago. We first opened the account in 1991.
The only solution I could find was Revolut, which, even as a non-resident, gives you a UK IBAN if you create an account in GBP. The DDs are now taken from there, and I recently received a £6k tax rebate from HMRC into that account. I also used a Revolut debit card dozen of times with no issues on our recent UK pilgrimage over Xmas.
Via Revolut my son also finally managed to cash in £400 of Children's Bonds which my (now-deceased) mother gave him 25 years ago. Until now NS&I were insisting on paying them into a UK bank in his name, which was a bit of a challenge as he left the country aged 7 and never lived there since.
I wouldn't leave large amounts in there, (I generally have no more than £1K across GBP, EUR and CHF accounts), but it is a very useful banking tool for expats in general.
crossie said:
Why not let the flat full time ?
most 2 beds in York rent for 1000 plus a month
That was my thought too.most 2 beds in York rent for 1000 plus a month
We have a holiday let, and with current mortgage costs and energy costs its barely washes its face, but delivers loads of hassle.
Basic change over costs (house keeping, welcome pack and linen) are >£200 for each stay plus we pay commission to the agent at 20% Basically it needs £450 per week to cover these costs, add in the mortgage, gardener etc and it needs £700 per week.
If we didn't want to use it ourselves, it would be better off on a 6 month let with less hassle.
blueg33 said:
That was my thought too.
We have a holiday let, and with current mortgage costs and energy costs its barely washes its face, but delivers loads of hassle.
Basic change over costs (house keeping, welcome pack and linen) are >£200 for each stay plus we pay commission to the agent at 20% Basically it needs £450 per week to cover these costs, add in the mortgage, gardener etc and it needs £700 per week.
If we didn't want to use it ourselves, it would be better off on a 6 month let with less hassle.
I have a four bedroom holiday cottage in a coastal village. It does very well BUT I live local and we do our own laundry, a friend does the cleaning and hot tub. We have a holiday let, and with current mortgage costs and energy costs its barely washes its face, but delivers loads of hassle.
Basic change over costs (house keeping, welcome pack and linen) are >£200 for each stay plus we pay commission to the agent at 20% Basically it needs £450 per week to cover these costs, add in the mortgage, gardener etc and it needs £700 per week.
If we didn't want to use it ourselves, it would be better off on a 6 month let with less hassle.
We moved away from Sykes as they take 21% inc vat and now we use AirB&B. The market is now primarily short breaks so lots of changeovers.
If we paid full fees it would be a poor investment.
You also need to look at the market. Most places are awash with 2 bed apartments and cottages. Our 4 bedroom place sleeps 8 so more options for families.
Leicesterdave said:
I've had it 6 years- seem to clear around £800/Month on average- Christmas and Summer being the bigger earners. The flat is in York.
When I work out that it needs managing and cleaning (20% commission), repairs, tax, buuildings insurance etc I wonder if there are better investments out there.
We've also moved abroad which complicates matters further.
If I was to sell it and pocket £260,000ish, what could I invest that money in??
Am I imagining this or did you post on another thread that the flat is above a shop and would be a difficult sale ? When I work out that it needs managing and cleaning (20% commission), repairs, tax, buuildings insurance etc I wonder if there are better investments out there.
We've also moved abroad which complicates matters further.
If I was to sell it and pocket £260,000ish, what could I invest that money in??
Also is it on the outskirts of York as opposed to a city centre type conversion?
As I said , I’m maybe getting mixed up with another thread but it rings a bell for some reason .
lrdisco said:
blueg33 said:
That was my thought too.
We have a holiday let, and with current mortgage costs and energy costs its barely washes its face, but delivers loads of hassle.
Basic change over costs (house keeping, welcome pack and linen) are >£200 for each stay plus we pay commission to the agent at 20% Basically it needs £450 per week to cover these costs, add in the mortgage, gardener etc and it needs £700 per week.
If we didn't want to use it ourselves, it would be better off on a 6 month let with less hassle.
I have a four bedroom holiday cottage in a coastal village. It does very well BUT I live local and we do our own laundry, a friend does the cleaning and hot tub. We have a holiday let, and with current mortgage costs and energy costs its barely washes its face, but delivers loads of hassle.
Basic change over costs (house keeping, welcome pack and linen) are >£200 for each stay plus we pay commission to the agent at 20% Basically it needs £450 per week to cover these costs, add in the mortgage, gardener etc and it needs £700 per week.
If we didn't want to use it ourselves, it would be better off on a 6 month let with less hassle.
We moved away from Sykes as they take 21% inc vat and now we use AirB&B. The market is now primarily short breaks so lots of changeovers.
If we paid full fees it would be a poor investment.
You also need to look at the market. Most places are awash with 2 bed apartments and cottages. Our 4 bedroom place sleeps 8 so more options for families.
their fee varies depending on service level ) they find that short breaks are a thing in the towns and Cotswolds but not much on coastal properties. Ours is coastal, and is available for short breaks, but we get few takers, obviously short breaks are priced to allow for extra changeover costs so a week look better value.We keep looking at Airbnb but that needs more management input from us which isn't that feasible, but I do think it would give us better pricing flexibility.
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