Client Case Study
Turning Short-Term Accommodation Into a Wealth-Building Strategy
“Our job is to show you what’s possible.
Your job is to decide what’s right for you.”
At WhiteStar we often work with clients who are building wealth through property in creative ways. This particular client has developed a very effective strategy focused on coastal locations in Northern Queensland, combining lifestyle locations with strong short-term accommodation demand.
By purchasing properties in desirable coastal areas and operating them as short-term accommodation, the client has been able to generate strong rental income while continuing to grow their investment portfolio.
However, to continue expanding the model, they needed to refinance several existing mortgages and access funds to improve the properties and increase accommodation capacity.
The Challenge
While the investment strategy was performing well, the structure created a lending challenge.
Key considerations included:
- 100% of the rental income was generated through Airbnb
- Not all lenders treat short-term accommodation income the same way
- Some lenders heavily discount or ignore Airbnb income when assessing affordability
- The client required refinancing across multiple properties
- Additional cash-out funds were needed for property improvements
Without the right lender policy, the income being generated from the properties would not have been properly recognised in the loan assessment.
The Solution
Our broker Maria worked through the client’s portfolio and identified lenders whose policies were more suitable for short-term accommodation income.
Using her experience and knowledge of lender criteria, she was able to:
- Refinance the existing mortgage facilities to the same lender
- Secure a lower interest rate across the portfolio
- Ensure the Airbnb income was appropriately assessed
- Obtain cash-out funds for property improvements
- Support the client’s next stage of property expansion
This allowed the client to continue growing their accommodation offering and strengthen the income generated across the portfolio.
The Outcome
The refinance achieved several key outcomes:
- Lower interest rates across the existing loans
- All mortgages with the same lender
- Access to funds for property improvements and additional accommodation
- Lending structured to recognise the strength of the Airbnb income
- Continued growth of a successful property investment strategy
Investment Strategies Aren’t Always One-Size-Fits-All
Not every investment scenario fits neatly within standard lending policy. But with the right experience and lender knowledge, many “out-of-the-box” situations can still be structured successfully.
At WhiteStar Finance & Conveyancing, we regularly help clients with:
- Investment property mortgages
- Construction loans
- Self-managed super fund lending (SMSF Loans)
- Debt consolidation Solutions
- First Home Buyers Including Home Guarantee Schemes & Family Pledge
- Poor credit or bad credit home loan options
- Refinancing or restructuring loans to improve cash flow
- Interest-only strategies for investment portfolios
Whether your scenario is straightforward or a little more complex, our team is experienced in finding solutions.
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