Airbnb hosts are continue to enjoy upon returning from vacation, and with research on “Airbnb host requirements” increasing by 200% over the past month, there has been no shortage of European homeowners interested in earning a side income. But where do Airbnb listings have the most potential to generate the highest profits?
Curious to find out, Uswitch.com/mortgages compared the average Airbnb prices in cities across Europe to find out the most profitable city to own an Airbnb!
The results
London is the most profitable European city to host an Airbnb
Airbnb owners at London could see more profits than any other city analyzed, Uswitch.com/mortgages can reveal. A three-bedroom house in the English capital rents on average for €328.07 one night on Airbnb, 60% more expensive than in Manchester (€205.27). Those who rent their Airbnb homes full-time can expect an average of €9,842.10 per month: 66% more than the profits observed in the German capital, Berlin (€5,927.70).
Parisian Airbnb hosts receive the second highest income, with rates per night on average €295.39. Airbnb hosts in the French capital earn 90% of their London counterparts (€328.07), but incomes in Paris are 62% higher than in Lyon (€182.07 per night). Full-time hosts in Paris receive on average €8,861.70 per month: only €29.70 (0.33%) more than Airbnb hosts in Munich third.
Average rates per night €294.40 one night in Munich, the third highest in Europe. Airbnb hosts at Munich earn 49% more than those Berlin (€197.59), and 85% more than those of Vienna (€158.83). Permanent hosts Munich win €8,832 one month on average; €105,984 per year, and 14% more than Dublin in fourth (€7,768.20).
Tips for getting a mortgage for a second home
Mortgage Expert, Florence Codjoé, outlines some of the considerations to consider before getting a second home mortgage:
“Decide between a fixed or variable rate. As with all mortgages, you need to decide if you want a fixed or variable rate deal. Variable rates may be lower initially, but if rates go up, you could end up paying more overall than if you had subscribed to a fixed rate. Fixing your mortgage also means you’ll always know how much your current mortgage payments will cost.
“Wait to pay off your current mortgage. It might be worth waiting until you’ve paid off 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. Keep in mind that you will also have to pay an additional 3% stamp duty on top of normal rates when buying a second home, so be sure to budget accordingly.”
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