London Airbnb Strategy: Greenwich Main Home Cash-Out Remortgage & Short-Term Let Project

Greenwich, London · Airbnb / short-term let

In another London project, our client, who had built up significant equity over about 5 to 6 years through a previous residential property investment, procee...

Initial investment

Purchase price: Approx. £525,000
Deposit (25%): Approx. £131,000
Stamp duty + additional rate surcharge: Approx. £42,500
Legal & professional costs: Approx. £3,500
Furnishing, setup & Airbnb preparation: Approx. £18,000
Total capital utilised: Approx. £195,000

In another London project, our client, who had built up significant equity over about 5 to 6 years through a previous residential property investment, proceeded with cash-out remortgage to fund the purchase of a short-term let property in Greenwich.

The project involved a modern 2 bed / 2 bath terraced house in an excellent location close to Canary Wharf transport links, riverside developments, and tourist demand hotspots.

First full year of operation

Approximately 63% annual occupancy
Average nightly rate of approx. £295/night
Annual turnover of approx. £68,000

Annual running costs (first year)

Mortgage payments: Approx. £18,000/year (£1,500/month)
Airbnb / OTA platform fees: Approx. £4,500/year
Cleaning & linen management: Approx. £6,500/year
Utilities & council tax: Approx. £4,200/year
Insurance & maintenance: Approx. £2,300/year
Servicing, consumables & operational costs: Approx. £2,000/year
Total annual running costs: Approx. £37,500 to £39,000
Net annual profit: Approx. £34,000 to £36,000

Results

Return on total capital utilised: Approx. 18%+ annually (first year)
Outlook: As positive reviews increase and operational efficiency improves, annual return could noticeably exceed 20% in coming years
Capital recovery outlook: If performance continues at similar levels, virtually full recovery of initial capital within roughly the first 5 years
Street growth (recent years): Long-term trend of approximately 5.3% annually

Past performance is not a guide to future results. Figures reflect a specific client situation, market conditions at the time, and agreed fees. Your outcome will depend on your strategy, financing, and the property you buy.

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