Airbnb hosts are continuing to profit from the return of holidays, and with searches for ‘Airbnb host requirements’ increasing 200% in the past month, there is no shortage of European homeowners interested in earning a secondary income. But where do Airbnb listings have the most potential to see the highest profits? Curious to find out, Uswitch.com/mortgages compared average prices of Airbnbs in cities across Europe to uncover the most profitable city to own an Airbnb.
London is the most profitable European city to host an Airbnb
Airbnb owners in London could see more profits than any other city analysed, Uswitch.com/mortgages can reveal. A three-bedroom home in the English capital is rented out at an average of 328.07 euros a night on Airbnb, 60% more expensive than in Manchester (205.27 euros). Those renting out their Airbnb homes full-time can expect an average of 9,842.10 euros per month: 66% more than the profits seen in the German capital, Berlin (5,927.70 euros).
Parisian Airbnb hosts receive the second highest income, with nightly rates averaging 295.39 euros. Airbnb hosts in the French capital earn 90% of their London counterparts (328.07 euros), but income in Paris is 62% higher than in Lyon (182.07 euros a night). Full-time hosts in Paris receive an average of 8,861.70 euros a month: only 29.70 euros (0.33%) more than Airbnb hosts in Munich in third.
Nightly rates average 294.40 euros a night in Munich, the third highest in Europe. Airbnb hosts in Munich earn 49% more than those in Berlin (197.59 euros), and 85% more than those in Vienna (158.83 euros). Munich’s permanent hosts earn 8,832 euros a month on average; 105,984 euros a year, and 14% more than Dublin in fourth (7,768.20 euros).
Tips on getting a mortgage for a second home
Mortgages expert, Florence Codjoe, outlines some of the considerations to make before getting a second-home mortgage:
“Decide between a fixed or variable rate. As with all mortgages, you should decide whether you want a fixed or variable-rate deal. Variable rates might be lower initially, but if rates increase you could end up paying more overall than if you took out a fixed rate. Fixing your mortgage also means you’ll always know how much your ongoing mortgage repayments will cost.
“Wait to pay off your current mortgage. It could be worth waiting until you’ve repaid more (or even all) of your current mortgage. Waiting to pay off your current mortgage could help you get a better deal on a second home mortgage.
“Budget for stamp duty. Bear in mind that you’ll also have to pay an extra 3% in stamp duty on top of the normal rates when you buy a second home, so make sure you budget accordingly.”
To read the daily news, click here