Based on my calculations, one could earn over $300,000 AFTER the payment of a mortgage by listing on Airbnb (conditions apply- stay to the end).
A thread #FinanceTwitterJa
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A thread #FinanceTwitterJa
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In 2018, the short-stay market in Jamaica grew by 62%, attributable to the increase in Airbnb bookings from 55,000 in 2017 to 89,500 last year.
Airbnb has its advantages for vacationers (locally and abroad) & has created multiple income opportunities for Jamaican homeowners. 2/
Airbnb has its advantages for vacationers (locally and abroad) & has created multiple income opportunities for Jamaican homeowners. 2/
Despite these advantages, Airbnb has had a negative effect on real estate in Jamaica, particularly for persons seeking to own a home. It has contributed to both the decrease in availability & reduction in the affordability of rentals/purchases in areas such as Mona & Liguanea 3/
The picture below highlights some key info about AirBnBs in Jamaica:
Average revenue in Jamaica is $2600 US a month (Mobay $3,500 and Kgn $2,000)
4000 registered hosts
9000 listings across the island (most in Kgn)
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Average revenue in Jamaica is $2600 US a month (Mobay $3,500 and Kgn $2,000)
4000 registered hosts
9000 listings across the island (most in Kgn)
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The question was asked, if AirbnB is profitable. Some listings on AirBnB were examined in two key areas: Kingston and Montego Bay.
Based on the prices to purchase the same properties that were listed, I assumed the following to compare the mortgage with the listed costs 5/
Based on the prices to purchase the same properties that were listed, I assumed the following to compare the mortgage with the listed costs 5/
30 year mortgage, 10% downpayment, 8.5% interest rate, US $130 conversion (I did this a while ago) and rental for 15 days of the month.
Looked at 3 categories of apartments (>$US 150 per night, $50 - $150, and <$50). /6
Looked at 3 categories of apartments (>$US 150 per night, $50 - $150, and <$50). /6
Looked at a number of apartments in each of those categories across the cities with 1 bedroom, 2 bedroom and 3 bedroom.
The overall average income for luxury apartments(>US $150 per night) is $257,000 after the payment of a mortgage. Kingston had higher averages than Mobay /7
The overall average income for luxury apartments(>US $150 per night) is $257,000 after the payment of a mortgage. Kingston had higher averages than Mobay /7
The average gross income after the payment of the mortgage is $38,224 in the Mid-Range Rentals (US $50 - $150 per night) with Mobay higher than Kingston in this category. 8/
Apartments renting for less than $50 a night were not profitable after the payment of a mortgage in any situation. 9/
I call it gross income because other payments such as peril & life insurance, maintenance and other mortgage related fees arent included. Note that those things are important to consider as well.
The figures reflect the subtraction of a mortgage pmt but not everything else /10
The figures reflect the subtraction of a mortgage pmt but not everything else /10
