South Australia stands out as the top state for Airbnb hosts looking to pay off their mortgage quickly, according to recent analysis from MortgageBroker.com.au.
With an average nightly income of $314 and annual earnings of $25,864, the average mortgage could be paid off in just 20 years using Airbnb income alone.
The Barossa Valley, renowned for its wine production, plays a pivotal role in these earnings. In Light Pass, one of Barossa's key areas, hosts can expect to earn up to $40,410 annually, with properties booked for an average of 106 nights per year.
“The Barossa Valley dominates the top spots for quickest mortgage payoff potential,” mortgage experts at MortgageBroker.com.au said.
Following closely behind, New South Wales boasts an average of $304 per night for Airbnb hosts, with annual earnings of $17,483. However, despite the attractive figures, it takes around 33 years to pay off a mortgage in the state.
Sydney alone, with its 15,548 Airbnb listings and iconic attractions, accounts for a significant portion of the state’s Airbnb earnings. Hosts there book properties for an average of 72 nights a year.
Queensland ranks third, with an average nightly rate of $292 and a mortgage payoff period of 45 years. Despite having one of the cheapest nightly rates, the state is a hotspot for nature lovers, thanks to its five World Natural Heritage areas.
Victoria, home to the bustling city of Melbourne, trails behind other states with a whopping 90 years required to pay off a mortgage. The state’s Airbnb properties offer the lowest nightly rates, averaging only $169.
Competition in Melbourne is fierce, which could be one reason for the low rates. As a result, hosts are seeing lower returns, making it harder to cover mortgage payments with Airbnb earnings alone.
While Tasmania takes fourth place overall, it has one of the top individual locations in Glamorgan/Spring Bay, where properties can pay off mortgages in just 17 years.
MortgageBroker.com.au highlighted that properties in Glamorgan/Spring Bay charge around $263 a night and book an average of 111 nights per year, generating an annual income of $26,597.
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