Airbnb has created a shift in how people travel, presenting ample opportunity to improve one’s return on investment for property purchases. Now, people are expanding on the opportunity by purchasing international property in countries that they’d like to visit or that rank high in desirability for Airbnb enthusiasts.
If you’re looking to purchase a foreign summer home that will pay for itself, some countries are better than others. First, here are a few considerations when purchasing foreign property for this purpose.
Things to Keep in Mind
Before starting an Airbnb, it’s important to consider your goals. What do you hope to accomplish? How much time will you have to dedicate to marketing your location? These considerations become more complex when purchasing a foreign property.
First and foremost, it’s ideal to go visit the place you’re investigating. If buying sight unseen, invest in an unbiased inspection and use video messaging to take a tour.
If you’re not going to be in the area, you’ll also need to outsource to an Airbnb Host who will act as a property manager in your absence, ensuring the area is clean between visits and helping guests as needed. While there are a lot of moving parts to consider, purchasing foreign property and listing it on Airbnb can yield a great profit for savvy investors.
Best Countries for Airbnb
There are a few key factors that contribute to one country being “better” than another when it comes to listing an Airbnb rental. Scenic countries that are investing a lot in tourism will see an increase in traffic, while others are common stopover locations that require a lot of one-night stays. Here are some of the best countries for Airbnb.
Australia isn’t a country that one just stops at for a few days. Tourists from North America often spend weeks or even months visiting the country, due to the intense travel requirements to get there. This creates an opportunity for those who invest in property there, as they’ll be more likely to get bookings for extended periods.
Australia has an incredibly versatile landscape. Purchasing a home in Sydney to list on Airbnb creates a great starting point for both investors and tourists.
Iceland is an incredibly beautiful country with an isolated landscape. Icelandair made waves in the travel industry when introducing their stopover options that allow visitors to take a few days between flights at no extra charge.
As many of the main attractions of the Golden Circle are in proximity to the international airport, visitors can take a day to float in the world-famous Blue Lagoon or take a couple of nights to rent a cottage beside a glacial lake and watch the Northern lights.
Costa Rica is increasing in popularity with each passing year, due to investments in the tourism industry. Travelers love the combination of beautiful beaches, lush jungles, and relative safety. It’s the main destination for eco-tourism, with incredible work opportunities such as teaching English as a second language and caring for baby sea turtles.
The cost of living in Costa Rica is quite affordable, making it the ideal location to purchase property for both visiting and listing on Airbnb.
The United States of America remains one of the top destinations for Airbnb. There are a few factors impacting the numbers, including the substantial landmass and iconic cities. USA Airbnb locations don’t just attract foreign visitors, but also Americans who are traveling for work or taking in the sights without leaving home.
When considering a city to invest in, think outside the box. New York City and Los Angeles both have an incredibly competitive market. Cities like Virginia Beach, Jacksonville, and Philadelphia tend to have a higher ROI.
When approached the right way, your investment can pay for itself through Airbnb. This is a great option for those who wish to expand their portfolio or travel more while capitalizing on the gig economy.