PRODUCTIVE MOVE: Philippa Clayton has three Airbnb properties and will make $8000 out of Supercars week from two units she owns on The Hill.Philippa Clayton could not believe how “easy and successful”her first Airbnb property was.
Now, three years on, she owns three and stands to make $8000 in a week during Supercars next month from two units on The Hill.
Ms Clayton is part of a rising number of Novocastrians who are cashing in on the short-term rental movement.
According to Newcastle business advisory and accounting firm Pitcher Partners, there has been a surge in the number of the city’s short-term listings on Airbnb.
They used to data from tracking site AirDNA成都夜生活 and found Newcastle had 511 Airbnb rentals with around one-thirdlisted by owners with more than one property.
Data from AirDNA成都夜生活 showed the total revenue enjoyed by Newcastle’s Airbnb owners over the month of November last year was $1.4 million,up 378 per cent on the $370,000 for the same period in 2016.
Ms Clayton’s Airbnb journey began when she utilised a granny flat at her Highfields property.
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“I had this space downstairs, which was like a fourth bedroom and was a bedroom for me at the time,” Ms Clayton said.“I’d think I’m going to rent this out.”
Airbnb provided the vehicle.
“I thought I had nothing to lose and I was blown away by how easy and successful that was,” Ms Clayton said.
“In the first three months there was only about 10 days that it wasn’t booked.”
The “jack of all trades” saw an opportunity when she bought three units in their own complex on The Hill last year. She lives in one and Airbnbs the other two.
Last year Supercars organisers rented the two properties, which each sleep five, for volunteers to the tune of $4000 each for one week. They will do the same next month when the Newcastle 500 juggernaut rolls into town again for the November 23-25 event.
Philippa Clayton enjoys the view from her home on The Hill. She bought a three-unit complex in Church Street last year. Ms Clayton lives in one and Airbnbs the other two.
Pitcher Partners Newcastle managing partner Michael Minter said “many locals are unaware they have a lazy assetat their disposal”.
“Events like the Supercars are generating a lot more talk around people using Airbnb -renting out a room for it or vacating the house for the duration and getting some good dollars for it,” Mr Mintersaid.
“It has opened people’s eyes to theopportunity here, not just around the time of the Supercars but as an ongoing thing, just to generate a bit of extra cash.”
Mr Minter, however, warnedwith the opportunities offered by the sharing economy came a host of new tax obligations that owners should be aware of.
Nightly rates for the city’s top properties have reportedly jumped from $400 per night to $1400 ahead of the Newcastle 500with the most expensive listing commanding $2000 per night.
“If you are renting out space there is no question it must be reported as taxable income in your tax return,” he said.
“Of course, you can claim a portion of spend on that space but if you are utilising your family home in some way to earn a shared space income then you don’t get the full capital gains tax exemption upon selling it.
“A lot of ns have significant wealth tied up in their family home. As soon as you start renting out a portion of it is no longer a tax-free asset and people don’t always think about the long-term impact.
“Smart sharing is about being aware of all the implications and doing your homework carefully.”