Quora Answer: Is Buying Property Just for Airbnb a Good Retirement Investment?

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.