Tag: lat_54.9738474

Investing in Property for Sale: How to Buy A Profitable Property for Airbnb in Newcastle City Centre

Post author By Robyn Peña
Post date November 24, 2022

airbnb property for sale Newcastle City Centre

Known for its nightlife and friendly locals, Newcastle is a beautiful city to visit. The iconic Angel of the North sculpture has prices that are significantly lower than those seen in London, plus rental growth and capital appreciation forecast almost in line with top regional property hotspots. Undoubtedly, Newcastle has emerged as an ideal location for profitable investment.

When looking for a property for Airbnb in Newcastle, you should not only look at its close proximity to major tourist areas but also determine its potential profitability. It’s also good to know that Airbnb rules in Newcastle are not too strict. In this article, we’ll discuss the metrics in order to gauge the best property investment in Newcastle, which is an important step when buying a property investment in the UK.

This includes the best website recommendations for property investment, each property’s gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location.

Is Property Investment Profitable in Newcastle City Centre?

Since the UK has the fastest-growing property markets across the globe, there is a wide variety of profitable property investments offering higher yields. Using an Airbnb calculator, it was discovered that a 2-bedroom apartment in Newcastle City Centre can generate an annual revenue of £18,761 with a steady occupancy rate of 56% and a nightly rate of £219.

airbnb property for sale Newcastle City Centre

Profitable Properties for Sale in Newcastle City Centre

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Check out the new housing properties in Newcastle City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

Disclaimer: The properties featured in this article are indicated as examples and there is a possibility that they have already been sold and removed from the website's listings.

Aldeburgh Avenue, Newcastle Upon Tyne, Tyne And Wear NE15

1. Studio-type Property for Sale Newcastle
1.4 miles to Blaydon

Asking Price: £29,950

GROSS RENTAL YIELD	17.12%
ANNUAL REVENUE	£5,126
CASH ON CASH RETURN	25.58%

Duke Street, Ashington NE63

2. 1-Bedroom Property for Sale Newcastle
2.7 Miles to Pegswood

Asking Price: £78,000

GROSS RENTAL YIELD	20.84%
ANNUAL REVENUE	£16,256
CASH ON CASH RETURN	36.76%

Glebe Road, Forest Hall, Newcastle Upon Tyne NE12

3. 2-Bedroom Property for Sale Newcastle
0.3 miles to Forest Hall Primary School

Asking Price: £85,000

GROSS RENTAL YIELD	25.05%
ANNUAL REVENUE	£21,296
CASH ON CASH RETURN	49.39%

Horton Place, Blyth NE24

4. 3-Bedroom Property for Sale Newcastle
3.1 miles to Cramlington

Asking Price: £80,000

GROSS RENTAL YIELD	22.17%
ANNUAL REVENUE	£17,732
CASH ON CASH RETURN	40.73%

Ellesmere Road, Benwell, Newcastle Upon Tyne NE4

5. 4-Bedroom Property for Sale Newcastle
1 mile to MetroCentre

Asking Price: £100,000

GROSS RENTAL YIELD	26.14%
ANNUAL REVENUE	£26,137
CASH ON CASH RETURN	52.64%

Conclusion

Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Newcastle such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.

Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions!

As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.

Tags Airbnb Investments, lat_54.9738474, lng_-1.6131572

Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Newcastle

Post author By Robyn Peña
Post date August 8, 2022

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business! In this article, we featured the entire process of Airbnb rental arbitrage in Newcastle, its profitability, and the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage!

What is Rental Arbitrage?

Rental Arbitrage is a way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property!

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time.

Here’s a proof! In Newcastle, Ryan manages 18 listings and I’m pretty sure that he doesn’t own the all properties. He made £432,910 in the last 12 months.

How much can I make with rental arbitrage in Newcastle?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Newcastle City Centre, located in the NE1 district which ranks the highest yields (averaging 8.16%) in Newcastle.

Since this neighborhood offers a variety of options from period properties to building apartment blocks, it attracts the majority of investors. Not to mention that it is near the tourist attractions such as the Tyne Bridge & Newcastle Cathedral, which boosted rental demand and yields! Now that we have the best neighborhood to invest in Newcastle, let’s talk about profitability and monthly expenses.

Profit & Monthly Expense in Newcastle

Based on Airbtics’ data, you can earn a whopping £2,327 per month for a 2-bedroom apartment in Newcastle City Centre alone. With the data provided, you can certainly tell that investing in a property in Newcastle is profitable!

Average Rent Price	Airbnb Monthly Revenue	Monthly Expense	Monthly Profit
£1,031	£2,327	£465	£831

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price and monthly expense (£2,327-£1,031-£465 = £831).

Startup Cost in Newcastle

Now that you have an overview of how much your monthly expense and revenue is, let’s talk about the start-up cost! How long does it take for an investor like you to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price)	Cash Return Time
£4,062	2 months

The average estimated startup cost (for furnishing) in Newcastle is around £2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price (£2,062). Now that we have a total startup cost of £4,062, cash return time can be calculated by dividing this by the monthly profit(£831).

Given your monthly revenue of £831, it will take approximately 2 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Newcastle!

Best Areas for Rental Arbitrage in Newcastle

Before investing in a particular area in Newcastle, you have to take a look at the top markets and number of listings to set your expectations for success. Check out the top 3 neighbouroods in Newcastle ranked by their annual revenue, along with their occupancy & daily rates!

1. Newcastle City Centre (NE1)

This area is incredibly attractive to investors because of its waterfront rental properties and historic buildings. It also has an exciting yield of 8.16%! Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£733	£1,877	60%	£137
2-bedrooms	£1,013	£2,327	65%	£177
3-bedrooms	£1,220	£2,119	54%	£174

According to our Airbtics Dashboard, there are more than 132 Airbnb listings with 15 private room properties and 45 one-bedroom properties in this area. The monthly revenue for most properties in Newcastle City Centre is more than £830 per month with occupancy being more than 86%.

2. Jesmond (NE2)

One of the most popular student property areas in Newcastle, Jesmond offers an average rental yield of 4%. Because this area is usually filled with student lets and shared student properties, there are relatively cheaper property prices! Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£671	£1,875	65%	£129
2-bedrooms	£867	£1,862	71%	£148
3-bedrooms	£1,143	£2,320	49%	£184

This area has a total of 55 Airbnb listings with 25 private room properties and 34 one-bedroom properties. The monthly revenue for most properties in Jesmond is more than £829 per month with occupancy being more than 60%.

3. Gosforth (NE3)

Last but not least, Gosforth is a sweet suburb situated near the city center. Many investors prefer to have buy-to-let properties in this area because it is near Newcastle airport & A1 motorway. Here’s what you can expect in this neighbourhood:

Type of Bedrooms	Average Rent Price (pcm)	Average Airbnb Revenue	Occupancy Rates	Average Daily Rate
1-bedroom	£699	£2,264	58%	£131
2-bedrooms	£950	£2,737	78%	£142
3-bedrooms	£1,332	£1,956	63%	£93

This area has a total of 29 Airbnb listings with 6 private room properties and 11 one-bedroom properties in this area. The monthly revenue for most properties in Gosforth is more than £1,239 per month with occupancy being more than 29%.

Short-term rental regulations in Newcastle

To begin with, it’s certainly important to be familiar with the Airbnb rules in Newcastle to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

Energy Performance Certificates (EPC’s) are needed whenever a property is built, sold, and rented. A holiday accommodation that’s rented out for less than 4 months a year or is let out under a licence does NOT need an EPC.
It is required to pay Council tax in Newcastle.
Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence. Learn more about an HMO licence in Newcastle.

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative!

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

Craigslist allows renters to specifically state what kind of property they are looking for. You can try typing in ‘landlords allowing Airbnb’ or ‘sublease property in (city name)’ and try other keywords to get you on the right track.
Facebook marketplace has a vast community of landlords & renters, so you can try joining the right groups to lead you on the right path. Here are some of the finest Facebook groups that you can join:

Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

Tags Airbnb Rental Arbitrage, lat_54.9738474, lng_-1.6131572

Airbnb Rules All About Airbnb

Airbnb Rules in Newcastle

Post author By Robyn Peña
Post date July 29, 2022

If you are looking to buy investment properties in the UK, knowing the Airbnb rules in your preferred city is the first step! In this article, we featured Airbnb regulations in Newcastle along with short-term let policies, buy to let properties, things to consider in property investment, and more. Continue reading and learn more about the Airbnb rules in Newcastle!

Is Airbnb legal in Newcastle?

Don’t worry, Airbnb is legal in Newcastle! Without a doubt, this vibrant city has the most exciting nightlife in the North East of England. But not only that because it also has a variety of top-notch cultural & natural attractions.

Here is a little proof! As of May 2022, there are 6,041 nights available in Newcastle from Airbnb alone. Dream manages 32 listings, Properties Unique and Ryan operates 20 and 18 respectively.

How much can I make by running an Airbnb in Newcastle?

Currently, there are 302 Airbnb listings in Newcastle, with 54% of entire houses earning up to £2,496 a month. The Average Occupancy Rate in Newcastle is 47% and the average daily rate is £239. According to short-term holiday rental data source Airbtics, a 2-bedroom apartment in Newcastle can make up to £32,392 each year. Check out our Airbnb Income Calculator!

Short-term rental policy in Newcastle

Energy Performance Certificates (EPC’s) are needed whenever a property is built, sold, and rented. A holiday accommodation that’s rented out for less than 4 months a year or is let out under a licence does NOT need an EPC.
It is required to pay Council tax in Newcastle.
Any property with five or more people who form unrelated households, and share amenities such as a kitchen or bathroom, must have an HMO licence. Learn more about an HMO licence in Newcastle.

Property Investment in Newcastle

Before investing in a property in Newcastle, you have to consider the major determinators for success. This includes the median price paid, population, nearby landmarks or attractions, and the asking amount for rent to expect – among the rest.

Source: Newcastle Investment

Rental Properties in Newcastle

Buying a property in Newcastle with an impressive rental yield is an excellent way to have a passive income. Due to this city’s strong reputation in banking & excellent track record in overseas investment, property investors in this city are aiming to buy more properties. By looking at the following property investment websites such as Your Move & On The Market, you can get a grasp of the various prices in Newcastle.

Conclusion

In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do!

Tags Airbnb Rules & Regulations, lat_54.9738474, lng_-1.6131572

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Is Property Investment Profitable in Newcastle City Centre?

Profitable Properties for Sale in Newcastle City Centre

Conclusion

What is Rental Arbitrage?

How much can I make with rental arbitrage in Newcastle?

Profit & Monthly Expense in Newcastle

Startup Cost in Newcastle

Best Areas for Rental Arbitrage in Newcastle

1. Newcastle City Centre (NE1)

2. Jesmond (NE2)

3. Gosforth (NE3)

Short-term rental regulations in Newcastle

How to Find Landlords for Airbnb Rental Arbitrage

Search Engines & Marketplaces

Communicate with Landlords

Is Airbnb legal in Newcastle?

How much can I make by running an Airbnb in Newcastle?

Short-term rental policy in Newcastle

Property Investment in Newcastle

Rental Properties in Newcastle

Conclusion

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