You’re after a weekend escaper and want to be able to cover the mortgage by using Airbnb because of its higher returns. It’s an active investment strategy, and you don’t mind a high-risk profile. However, when it comes to the Queensland beach lifestyle you’re after the question is which coast – Gold Coast vs Sunshine Coast?
Before delving deep into the pros and cons of both of Queensland’s much-loved regions, do you have what it takes to be an Airbnb landlord? The high returns can be an exciting prospect, but not everyone is built to be an Airbnb host, let alone a Superhost which will see even more success with your property.
Things to consider before investing in an AirBNB property
The time it takes to be a reputable Airbnb host is considerable. Will you have the time to answer enquires, meet guests, perform key handovers, deal with complain and arrange cleaning? This isn’t an exhaustive list but if you’re already busy, you should consider if you can fit this in.
With lack of time means it’s likely you won’t be able to keep a close eye on damage made to the property. Security deposits aren’t usually made on Airbnb so you must ensure you have adequate insurance.
Unlike a residential rental, an Airbnb property is subject to peaks and troughs. There will be times of the year where a property makes great profits but also times of the year where the property is vacant for some time. Make sure you plan your cash flow and make those profits stretch over the quiet periods.
Be mindful that purchasing a property and turning it into an Airbnb may cause unease with your neighbours, particularly if you are purchasing an apartment property and your neighbours will be subjected to different people using common areas quite often.
Many people don’t realise that when purchasing an investment property for the purpose of it becoming an Airbnb rental, you need appropriate permission from the local council and your property must meet local regulations.
A Comparison of Gold Coast vs Sunshine Coast AirBNB Properties
To look at the bigger picture, we compared two Gold Coast vs Sunshine Coast Airbnb apartments.
Both apartments have three bedrooms and two bathrooms. They’re similarly furnished, are located next to the beach with ocean views.
|Gold Coast – Surfers Paradise||Sunshine Coast – Noosa|
|Price per night – off season||$398||$700|
|Discounts||5% weekly discount||8% weekly discount|
|Bookings||Booked 48 days to the end of September 2019||Booked 32 days to the end of September 2019|
|Rating||5 star (18)||5 star (54)|
Considering the Sunshine Coast property is over $300 more per night than the Gold Coast property, it isn’t too far behind in bookings. In other data collected, the Sunshine Coast did surprisingly well, possibly due to the lower number of Airbnb properties on the market. This may be why Sunshine Coast properties can ask a fraction higher daily rate and experience slightly higher profit margins. In this article about the top performing Airbnb locations, a common factor with the top performers is the low density of Airbnb’s in the area; they had fewer properties to compete against.
|Gold Coast||Sunshine Coast|
|Density||Medium to High||Medium|
|Average Daily Rate||$165||$193|
|Profit % margin||141%||156%|
|Most Common Rental Size||2 bed||2 bed followed closely
by 3 bed
As with any property investment, scrutinise the market. When considering the Gold Coast vs Sunshine Coast look at the demand for the business you will be providing and check out your competition; what can you do better in a property? During your property search, look at properties that will have an edge over others and be the front runner when people are looking for place to stay.