25-year-old made holiday rentals a million-dollar business,
When 25-year-old James Avramides purchased his first property in 2018, he had no idea it would change his life.
While still living with his parents, he renovated the apartment. Then, he listed it on a short-term platform for holidaymakers.
Six years later, he and his partner own at least four properties. Two of these are short-term rentals, while the other two are long-term residential leases.
Additionally, they have created a new business. This business services both their own “rentvestor” homes and those belonging to numerous Stayz customers.
“It’s proved to be a really good venture,” says Avramides, now 31. He left his corporate finance career to launch Getawayz NSW, a property management company.
“It’s been an absolutely fantastic way to pay the mortgage. Additionally, it offers the flexibility to use your own homes when they’re not booked.”
“After COVID, people are eager to travel again. They want the great experience of living like a local.”
“For property owners, it’s beneficial to have a place you can enjoy on weekends or holidays when it’s not rented out.”
His own two short-term lets are located in Sydney’s Potts Point and Crows Nest. Both areas are close to the city, the harbour, and public transport.
He advises potential investors to “think like a tourist.” Moreover, they should choose locations near major attractions that are easy to access.
In NSW, great options include areas close to a beach, the city, or beautiful countryside. These locations should also have good transport links.
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Similarly, in Victoria, great locations include inner-city Melbourne, which boasts fabulous restaurants and cafes. The Mornington Peninsula and wine regions are also excellent choices.
Properties should be comfortable, homely, and interesting. For example, consider a clifftop cottage in Victoria’s Portsea.
Another option is a modern oceanfront home in Wombarra, located on the NSW South Coast, near Wollongong.
Alternatively, a fabulously renovated 1820s barn in Hobart could be appealing. This barn has even won national architectural and heritage awards.
“Location is number one,” states Matthew Fleming, chief executive of Contemporary Hotels + Beach Houses + Villas. He emphasizes that holiday homes perform better when owners love them.
Additionally, he notes that visiting regularly and taking pride in the property enhances its appeal.
“The properties could be located by a beach, in a wine region, or at a wedding destination,” he adds.
Fleming explains that the ideal property has four to six bedrooms. This configuration allows many generations to gather in open-plan kitchens or dining areas.
Moreover, lawns or pools provide space for kids to disconnect from technology and reconnect with family.
“We also advise that properties be professionally managed,” he continues. “Good marketing is essential to reach your target market.”
Lastly, figures from MortgageBroker.com.au reveal insights from Airbnb data. They indicate the top states for earning income from short-term holiday lets.
Surprisingly, South Australia emerged as the most profitable state for holiday lets. Owners earn an average annual income of $25,864.
NSW follows in second place, generating an average of $17,483. Queensland ranks third with $13,725, while Tasmania is fourth at $12,706.
Victoria comes in fifth place, with owners earning an average of $7,611. In South Australia, the Barossa Valley is the most lucrative location.
Here, each property averages 106 nights of bookings annually. In NSW, Sydney is the top-performing area, while Melbourne leads in Victoria.
Buyer’s agent Michelle May advises potential property buyers to look for scarcity. This strategy helps avoid competition with similar properties when selling.
She emphasizes that this approach can lead to better capital gains after the holiday letting period.
“If purchasing an apartment, I prefer small, low-density blocks,” she says. Additionally, she recommends properties with lower maintenance fees, avoiding lifts and pools.
She cautions that many new apartments come with a premium price tag. This situation requires buyers to make up for higher costs from the beginning.
Furthermore, some apartment buildings prohibit short-term rentals. Meanwhile, a growing number of councils impose caps on rental nights.
In Victoria, levies on properties can also impact owners. Wealth Through Property buyers’ agent Scott Levoune stresses the importance of thorough research for investors.
Investors must price rentals by season and occupancy rates. Moreover, they should compare these figures with hotels, motels, and rival short-term lets.
“You need to be strategic about where you buy,” he advises. Some popular areas may already be saturated with rentals.
Ultimately, it’s crucial to consider capital growth that will exceed rental income over time.
