Buying Property in the same area - risks?

[Anthony55]

Hi

I currently airbnb an apartment in south yarra - I'm interested in buying another and putting this on airbnb as well.

It would be very close to my current one - has anyone done this here? Is there a risk that one property will effectively cannabalize the income of the other? Is there any indication of what direction the airbnb rental market is doing? I've been doing this for 18 months and ive notice a little down turn in rental income rates.

Anyone if anyone has any experience here id like to know more!

REgards

[Sue---Ian0]

We have 2-listings, each within 100m of each other. 2-different rents, one approx 1/2 the other but both stylish. We find that where we may have missed bookings on the largest, being the most expensive, those potential guests do look at the cheaper option and have booked same. So, they seem to attract a different market based on the different prices. 

[Gerry-And-Rashid0]

I would be very careful about buying property based solely on AirBnB as the financing model. AirBnB is still in its infancy and as you will have seen legislators are struggling to catch up with what this means for local hotels, neighbourhoods, long and short term residential lets. This may mean changes to local planning legislation in some areas - who knows.