Airbnb investment properties are popular ways for real estate owners to make money. With the stock market soaring, many people are electing to buy equities instead of investment houses. Investors may take a look at the stock market and see that the past ten years of gains have been amongst the best since the 1800s. Indeed, the market has done incredibly well over the past ten years, and there is no end in sight to these gains.
However, you probably shouldn’t ignore the value of real estate holdings. Here’s why Airbnb investment properties are a good option for your portfolio.
Real Estate Has Both Capital Appreciation And Income
While the markets may have tripled their money over the past ten years, real estate has not done poorly either. The average home selling price has risen from $257,000 to $382,000, a gain of 48%. However, this only tells part of the story as it doesn’t factor in the rental income portion.
While rental rates vary from region to region, let’s suppose that you bought this Airbnb investment property and were able to rent it out at an average income of $2,000 per month. In those ten years, you would take in $240,000 in rent (for the sake of simplicity, let’s assume that’s after all expenses). Once you add that on to the $382,000 value, you get a 142% return on investment, which is not bad at all.
Admittedly, it isn’t quite as high as the gains in the stock market, but it’s still a very healthy ROI and is an excellent addition to a balanced portfolio.