PHOTO: Airbnb’s are in every town in New Zealand now
A number of those that are under “mortgage stress” are turning to renting their family home they live in. Banks are even suggesting it to their customers as a way of gaining income – to ensure their clients can keep up with the mortgage.
Even though mortgage interest rates are at historical lows – many are over spending and not budgeting. A number of borrowers have “topped up” their mortgage to purchase a car or go on overseas trips and are now finding the bank won’t lend them any more money.
Bank lending is tightening ahead of a foreseeable financial storm due to uneasy economic times thanks to Brexit and US trade sanctions.
Australia is right in the think of a property correction and our banks (most of which are owned by Australian Banks) are very nervous
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So where do you stay? Many are resorting to staying with family or using the caravan at the holiday camp – all in aid of earning a few extra $$$.
Beware! This is income that must be detailed in your tax return and tax must be paid.
RELATED:
https://community.withairbnb.com/t5/Hosting/Financial-Times-article-on-Airbnb-hosting-stress/td-p/711660
https://www.macleans.ca/news/canada/over-half-of-vancouver-airbnb-hosts-use-income-to-pay-rent-mortgage-study/
https://www.stuff.co.nz/business/money/74867817/null
