Phil Brown

Airbnb Mortgages - Is this a sign of things to come for serviced accommodation.

Recommended Posts

Tipton and Colsey building society has announced it is to give holiday-lets and buy-to-let mortgages to customers wanting to specifically rent the property through Airbnb. 

 

Currently, this is a gap in the market as the number of people renting through Airbnb is on the rise, with few lenders offering this type of let as a condition of their mortgage.

 

The facts: 
- Available to applicants that want a shorter or no fixed term agreements.
- Available for second homes, holiday-lets, and remortgages 
- Maximum LTV is 75%
- In addition to personal earnings, income made from the property will be taken into consideration when looking at overall lending. 

 

Read the full story here: https://bit.ly/2LoSnzB

Screen Shot 2018-07-18 at 12.42.25.png

Share this post


Link to post
Share on other sites
On 7/28/2018 at 2:15 AM, martin evans said:

What is everyone's view on airbnb? Where do you see the market heading?

 @martin evans Great question! - In my view, the AirBnB market will end up taking a bit of a hit.  Currently, there are tax exemptions that can be used to make airbnb quite profitable, but I feel this will be closed within the next 1-2 years. Also, I see Airbnb stepping up to take bigger and bigger chunks of money from the owners is more than likely to happen. 

 

On the other hand, with some specialist lenders having products specifically with Airbnb in mind, this is a very positive sign from the market and opens it up a little more in the long run. I think if you can self-manage and live close to an Airbnb property in a desirable holiday location, then you can still make it work. If not, I think you'll end up just making more and more money for Airbnb and your management company and too little profit to make it worthwhile for yourself. 

 

I hope that helps. 

 

Cheers

 

Phil

 

Share this post


Link to post
Share on other sites

Hey Phil, 

I agree with your point on tax’s but I believe that won’t be the only way the government crack down on Airbnb if it continues to grow at the rate it is right now, for example in Berlin unless somebody is the owner of the Appartement then you can only rent on Airbnb for 90 days of the year due to the lack of housing and that is the way I could see it going in some of the major city’s of the UK.

But of course right now Airbnb is a great opportunity. Especially if you are self managing

Share this post


Link to post
Share on other sites

I think once 100% of the mortgage interest is no longer applicable towards mortgage tax relief and is in full swing from 2021, we'll start seeing a rise of AirBnB style properties i.e. advertised by the night. The flexibility will suit more people, than AST's, and eventually we'll see a review on taxation on serviced accommodation to curb growth and filter out the poor accommodation. 

Share this post


Link to post
Share on other sites
Guest Property For Sale | CTE

Hey, I found this cool site that shows property listings in Cape Town, South Africa

Rent property in Cape Town, Western Cape: https://www.capetownetc.com/cape-town-property-to-rent/

Property for sale in Cape Town, Western Cape: https://www.capetownetc.com/cape-town-property-for-sale/

 

Cape Town ETC | Showing property on sale and for rent

Share this post


Link to post
Share on other sites
Guest
You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...