Today’s banks are almost unrecognisable from what they were even a decade ago. Thanks to technology, the primary focus of banking has moved from…
If you’re struggling to pay off your house in South Africa, there might be an alternative solution. Its name is Airbnb.
London-based property agency Nested has this week published its latest Property ROI Index, which suggests that South Africans using Airbnb could experience quicker house value recuperation when compared to traditional rental schemes.
“For 75 international cities, we researched thousands of properties sold in the last 12 months or currently on the market to find the average price of a three-bedroom property,” Nested explains.
“For each market, we calculated exactly how long it would take you, in months, to recoup the property value based on average rental and Airbnb costs.”
It’s especially beneficial for those living in Durban, Johannesburg and Cape Town.
Average three-bedroom properties in Durban can take just 18 months to repay using Airbnb
In fact, houses in Durban offer the quickest value recuperation period of all cities surveyed. One could could pay off an average-priced three-bedroom house in less than two years when using Airbnb, as opposed to 167 months using traditional rental methods.
Johannesburg fared well too, placing at number five, taking 33 months for Airbnb repayment.
Cape Town however, thanks to its more expensive housing market, only made it into 12th on the list. You’ll need 50 months in the Mother City.
Have a look at the top 12 surveyed cities below.
A match made in Africa?
Interestingly, African cities take the first three places of the survey, with Lagos and Cairo in second and third, respectively.
Consequently, it seems that Airbnb’s investment in South Africa is also paying off. The company recently launched its Trips service, which repositions the accommodation company into a travel and tourism hub. Among the 12 launch cities was Cape Town, with Nairobi also featuring.
Incidentally, Nairobi wasn’t included in Nested’s study.
If you like tables, dollar signs and world city names, head on over to Nested’s Property ROI report here.