Peer-to-peer motorhome rental platform SHAREaCAMPER has released their 2017 Return on Investment Index, with the aim of identifying which cities around the world offer the highest return on asset investment via rental peer-to-peer (P2P) platforms such as Drivy or Homeaway. The Index is broken down into five categories of peer-to-peer rental: homes, campers, cars, boats, and money lending.
For 31 cities with highly developed sharing economies, rankings were calculated by analysing the ratio of market to P2P rental prices, including any fees paid by the owner, for more than one thousand assets per city. Cities were ranked by a grand total of the time needed to recoup investments, based on the return of investment percentage, in each of the five categories according to the asset-specific occupancy rate.
“The sharing economy offers great individual experiences as well as flexibility. With peer to peer rental, people can make memories in the camper, car, or boat they’ve always dreamed of owning. Similarly, everyday people can pay off investments simply by renting out underused assets,” states SHAREaCAMPER CEO Florian Dahlmann.
“The biggest lesson of our research is that you don’t need to charge exorbitant rental rates to pay off your investment. We are huge fans of win-win situations like this and we hope this research encourages development in more hesitant markets.”
Rental platforms such as Homeaway, Airbnb, Drivy, SHAREaCAMPER, Outdoorsy, Turo, Snappcar, GoMore, Sharoo, Campanda, Yescapa, Boathound, Yachtico, and Getmyboat were used to collect data. The findings are clear: If you’re thinking about investing, the sharing economy pays off.
The five best cities for a high return on investment via all P2P business models studied are:
| Homes | Campers | Cars | Boats | Money Lending | |||||
|---|---|---|---|---|---|---|---|---|---|
| City | Adj. Rate of Yearly Return | Years to Recoup | Adj. Rate of Monthly Return | Months to Recoup | Adj. Rate of Monthly Return | Months to Recoup | Adj. Rate of Monthly Return | Months to Recoup | Return |
| Barcelona | 9.70% | 10 | 6.19% | 16 | 3.55% | 28 | 7.94% | 13 | 12.70% |
| Wellington | 9.33% | 11 | 3.91% | 26 | 5.82% | 17 | 4.01% | 25 | 13.00% |
| Melbourne | 8.21% | 12 | 7.72% | 13 | 7.61% | 13 | 19.46% | 5 | 7.00% |
| Sydney | 11.96% | 8 | 4.76% | 21 | 5.95% | 17 | 9.62% | 10 | 7.00% |
| Auckland | 8.87% | 11 | 4.01% | 25 | 4.86% | 21 | 3.37% | 30 | 13.00% |
The sharing economy has opened up financial opportunities for private citizens using their property for a wide new range of accommodation, transportation, and leisure services. As cities create new legislation regarding them, it is important to take into account those who make a living through such platforms.
For full list of results, visit the SHAREaCAMPER website here
METHODOLOGY: Rankings were calculated by analyzing the ratio of buy-to-rent prices for over one thousand assets per city. Rental platforms such as Homeaway, Airbnb, Nestpick, Drivy, SHAREaCAMPER, Outdoorsy, Turo, Snappcar, GoMore, Sharoo, Yescapa, Boathound, Yachtico, Getmyboat, and Board a Boat were used to collect data. Business models such as Uber were not included in the study as they require employment as part of gaining revenue. We used the investment-specific occupancy rates, rental prices, and original retail price, plus any taxes and usage fees paid to the platform to calculate the time to pay off each asset. The occupancy rates for homes, cars, campers and boats were, respectively: 80%, 75%, 50% and 40%. Of course, there is no single model of camper, car, home, or boat available in every city. Rather than focus on comparable models, we chose to base our ranking not solely on retail or rental price but on the relationship between the two. Finally, this study only contains 31 cities, mostly European, North American, and Australian.
For the full methodology and results of the study with interactive table of findings: https://www.shareacamper.com.au/return-on-investment-index-au/
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