The Best European Cities for Airbnb Mortgages

Since its humble beginnings in 2007, Airbnb has exploded in popularity. Not only can travelers find accommodation anywhere in the world, but hosts can generate additional revenue by listing their accommodation on the platform.

But how much money can Airbnb hosts really expect to make, and could the profits be enough to pay off their mortgage?

Interested to know, mortgage comparison Uswitch experts collected data on the average price of Airbnb properties in popular European cities. After analyzing the data to find out how much profit Airbnb hosts could make, they calculated whether that revenue would be enough to pay off a full mortgage.

The top 10 European cities to repay your Airbnb mortgage

Dublin, Ireland

The best European city for Airbnb owners to pay off their mortgage fastest is Dublin. Not only is he recognized as one of most cultured european citiesbut the bustling Irish capital also boasts some of the the most beautiful houses in Europe.

With an estimated average mortgage price of €325,560 for a three-bedroom property, it would take Airbnb owners in Dublin just four years, two months and 26 days (or 1,549 nights) to pay off their mortgage. It is six times faster than the average over 25 years it takes most people to pay off their mortgage!

Manchester, England

The home of Alan Turning, Oasis, and perhaps the world’s most famous football team is also the second best place to pay off your Airbnb mortgage.

Manchester hosts could settle their mortgages after just five years, five months and 27 days (or 2,004 occupied nights) of renting their Airbnb property. A single week’s reservation would be enough to cover monthly mortgage repayments in the cultural city (estimated at €363,600).

Riga, Latvia

It would take just five years, nine months and 17 days (or 2,117 nights) of rent to recoup the full mortgage costs of €218,760 in the Latvian capital, making it the third-best place to own an Airbnb property. .

Riga is a visitor hotspot and a great destination for foodies. The capital is also famous for its astonishing Art Nouveau architecture and its Vecriga (old town) and Centers (downtown), making it an attractive choice for Airbnb guests.

Milan, Italy

With an estimated mortgage cost of €449,400 for a three-bedroom home, it would take Airbnb hosts with property in Milan six years, four months and 14 days to pay off, making it the fourth-best place to pay off Airbnb mortgages. .

The fashion capital is full of cultural architecture and monuments to attract tourists. From the famous Il Duomo cathedral to the stylish cafes that fill the Piazza del Duomo, you’ll have no trouble filling the 2,327 nights needed to pay off your Airbnb mortgage in Milan.

Roma, Italy

After its northern neighbor in fifth place is Rome, the ideal destination for Airbnb rentals.

Not only can the Italian capital allow hosts to pay off their mortgages in just six years, 11 months and 22 days (2,549 nights), but owning an Airbnb property in Rome is an easy grab for visitors. Airbnb listings in Rome are recognized as part of the the most affordable stays near an emblematic monument in Europe, making it a very attractive destination that is guaranteed to attract customers.

Porto, Portugal

Portugal’s second-largest city is the sixth-best place to pick up your mortgage price through Airbnb. Hosts in Porto would need 2,744 nights booked, or seven years, six months and six days of occupancy, to pay off the estimated mortgage price of €284,040.

To start recouping the costs, Airbnb hosts would only need a nine-day reservation to cover the repayment of a month’s mortgage, which is no difficult feat in a place like Porto. The coastal city has a lot to offer visitors, from its medieval quarter to its famous port wine.

Brussels, Belgium

Belgium is a popular location for Airbnb listings and offers some intriguing properties, such as the smallest Airbnb in the world residence. The historic city of Brussels made the top 10 as the seventh best place to own an Airbnb property for mortgage repayments.

Airbnb owners would need to rent their property for seven years, 11 months and four days (2,896 nights) to pay off the estimated average mortgage price of €438,000. An added attraction for visitors to stay at a self-catering Airbnb is that Brussels is one of cheapest cities to rent a car in Europe, making it easier to travel and explore.

Antwerp, Belgium

Not only is Antwerp one of the best cities to own an electric vehicle but it’s the eighth best place to pay off your mortgage through Airbnb. Hosts would need to fill their homes for 3,023 nights – or eight years, three months and 10 days – to recoup their mortgage costs.

Antwerp is a great place for a city break (and therefore for Airbnb guests!), with plenty of tours, museums, and foodie options to explore. Visitors can also use the Antwerp bike program to travel easily and cheaply in the city.

Ghent, Belgium

In ninth place is Ghent, the historic and lesser-known city of Belgium. A 10-day reservation would be enough to cover the payment of a month’s Airbnb mortgage in the medieval city. Ghent also has a lot to offer visitors, including its historic architecture and art.

Hosts would have to rent their property for eight years, seven months and 22 days (3,156 nights) to pay off their Airbnb mortgage, estimated at €453,000 in Ghent.

London, England

London tops the charts in 2020 for having most Airbnb listings of all European cities. It now completes the top 10 European cities where Airbnb owners can pay off their mortgage, where 3,277 nights of occupancy (eight years, 11 months and 19 days) would cover the cost.

Want to further increase your income with a rental in London? Airbnb owners in the UK capital can offer popular amenities such as valet parking, to increase the registration price €43.50 on average.

It is important to note that in London you will be subject to short-term rental laws, which state that you can only rent your property for a maximum of 90 days per calendar year. For longer than this you will need to receive permission from your local council.

Other European cities where Airbnb can pay off your mortgage

Other notable European cities where hosts can pay off their Airbnb mortgages include Vienna (11 years, eight months and five days) Paris (15 years, three months and 29 days) and Barcelona (15 years, 11 months and five days).

See below for where in Europe it would take under 16 to pay off your Airbnb mortgage.

How to manage a mortgage for your second home

If you can afford to invest in a second home as a vacation home or investment property, these can prove to be valuable long-term investments.

Listing a property you live in part of the year on Airbnb can be a great way to earn some extra income. However, there are many things to consider before you start.

The UK government has introduced the Rent-a-Room scheme, which allows you to earn up to £7,500 tax-free by sharing space in your primary residence.

On Airbnb, you can receive a tax-free allowance of £1,000 on income generated from renting out your property. You cannot claim both.

Uswitch mortgage expert Florence Codjoe highlights what you should 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.

Consider a rental mortgage. If you are investing in a second home for the sole purpose of renting out the property, a rental mortgage is worth considering. Most buy-to-lets are interest only mortgageswhich means your mortgage payments will be lower, giving you time to save up to pay off the “capita” amount at the end of the term.

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