Investment Or Risk? Let’s Chat Southern Highlands B&Bs

Investing in a B&B in the Southern Highlands, can offer a decent return, but it’s not a guaranteed goldmine.

Factors like location, property condition, and marketing efforts significantly impact profitability. Generally, a reasonable ROI for B&Bs can range from 6-12%, but this can fluctuate based on various factors.

A major benefit for potential investors is not only the Southern Highlands proximity to Sydney, Illawarra and even Canberra, there is a wide selection of properties available, range of locations and range of tariffs.

According to Samuel Lindsay of boutique agency Drew Lindsay Sotheby’s International Realty, there are a number of factors for investors to consider.

“Industry research strongly suggests that B&Bs in prime locations tend to have higher occupancy rates and can command higher prices,”

“Factors such as proximity to town centres, restaurants, attractions and ease of movement should be considered,” he said.

“Likewise, the quality of the property, its fit out and immediate surrounds are critical. Many B&B clients that choose the Highlands as a getaway want the rural ambience, space and country feel that the Highlands affords,” explained Samuel.

Here are a number of factors the potential B&B investor must consider:

• A well-maintained and attractive B&B will attract more guests and can command higher prices.
• Effective marketing strategies are crucial for filling rooms and maximizing income.
• A B&B’s occupancy rate is a primary driver of income. High occupancy rates translate to higher profits.
• Managing expenses like utilities, staff, and marketing are crucial for profitability.

Samuel believes that B&Bs in the Southern Highlands offer investors a two-fold benefit:  a credible growth in return on investment [especially with strong marketing and good occupancy] and capital appreciation.

“Values of quality properties utilised as B&Bs in the Southern Highlands have generally seen growth, potentially offering capital appreciation in addition to rental income,” he added.

B&Bs offer flexibility in terms of management. You can operate the B&B yourself, hire staff, pay for cleaning staff, gardeners and so on, or, as Samuel strongly suggests, use a management company to take the load and worries off your hands.

Things to consider:

Market research: Before investing, conduct thorough market research to assess demand and competition in the area.

Financial planning: Develop a detailed financial plan that includes start-up costs, operating expenses, and projected revenue.

Legal and regulatory requirements: Ensure you understand and comply with all relevant laws and regulations for operating a B&B.

According to Samuel, investing in a B&B in the Southern Highlands can be a rewarding venture, but it requires careful planning and execution. By focusing on prime locations, property maintenance, effective marketing, and sound financial management, you can increase your chances of achieving a good return on investment.

Samuel highlighted two quality properties currently on the market that would suit a discerning investor interested in acquiring a potential B&B.

Bowral Lodge – a ten minute walk to the centre of Bowral, and Burrawang House in the rustic village of Burrawang.

Both of these quality properties feature five bedrooms and four bathrooms, ample parking and wide spacious grounds. According to Samuel, both properties are unique examples of quality Highland living and would attract interest both locally and from overseas.

Click here to experience these two unique properties: Bowral Lodge or Burrawang House

For further information, please contact Samuel at Drew Lindsay SIR on 02 4861 2799.