The following is my answer to a Quora
question: “Is
buying property just for Airbnb a good retirement investment?”
Generally, unless you get a place cheap
enough, it is likely a terrible idea. Airbnb
rentals are very low. That means you
require a high turnover to generate reasonable cashflow. Once you factor in the cost of property
purchase amortised, the property tax, the cost of utilities, and other
maintenance costs, and then the cost of cleaning and insurance, I doubt you
would make a reasonable return on your investment. It would make more sense to buy a property
for traditional rental, whether residential, commercial or retail, depending on
where you are.
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