Hosting a short-term rental would be able to help cushion the impacts of the fixed-rate cliff, says a market expert.

Suburbanite principal Anna Porter said AirBnb could save everyday Australians from rising day-to-day costs and mortgage payments.

“Whilst the banks typically assess borrowing at a higher rate, the current interest rates are at 11-year highs, so we expect to see a real squeeze on the budget as these fixed rates wear off,” she said.

Talks about the fixed-rate cliff have gained traction over the recent months as fixed-rate expiry looms over many borrowers. In fact, around 800,000 households would likely face financial pressures due to fixed-rate terms expiring this year.

Ms Porter said households with higher repayments are turning to Airbnb to boost their income.

“They are simply moving back in with family so they can switch their home to an Airbnb full time, or some are doing it part time,” she said.

“Savvy part time Airbnb users simply do mini-stays with family and friends or go away camping to free up peak times and maximise their revenue.”

Ms Porter said the earnings homeowners can get by hosting will depend on location and the time of the year.

“In the permanent rental market, you will typically get 3% net returns, but rates are close to double this, so the return doesn’t even make a dent in the repayments,” she said.

“Airbnb can achieve much higher returns for the right property and the right location, helping some people cover their whole repayments.”

Ms Porter shared other tips to help manage increased mortgage repayments due to the fixed-rate cliff:

  • Check with the bank for a repayment holiday or other financial hardship services
  • Reach out to an accountant to do a crisis cash flow management plan
  • Owners thinking of selling must speak to a local agent to study the market and identify a reasonable price
  • When selling, homeowners do not necessarily have to tell the agents that they are in a financial hardship
  • Speak with a broker about keeping part of the current loan facility open for the next home purchase


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