在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
Just wanting to get some perspective on this one.
We have been quoted $250-$260 per week unfurnished for a property we are currently looking at and $300 - $310 furnished.
Spending $1500 on a house furnishing package from fantastic furnature in year one seems like a good plan to get the increased return in the long run (6.7% verses 8.06% return)
Can furnishing really make that much of a difference to renatl returns??!?! And who pays when things are broken!!!!???
You are ultimately responsible unless you have a clause in your rental agreement that the tenant agrees not to wreck, damage or spoil your furniture. But seriously I wouldn't bother with furnishing because most people have their own things. Only exception might be washing machine.
I just got quoted 300 unfurnished, and 600 furnished. I know which I'm picking!
WOW Loko!!!! I just cant imagine it would make such a big difference!!! I would HATE a furnished place if I was a prospective tennant!
AimeandLuke said: ↑
We have been quoted $250-$260 per week unfurnished for a property we are currently looking at and $300 - $310 furnished.Click to expand...Need to consider: how many renters there are at the furnished price - usually less than at the lower price (i.e. higher chance of vacancy). Is it aimed at a particular clientelle? (eg short term). The higher price might be to compensate for that fact that it may sit empty for 4 months in a year.
locko24 said: ↑
I just got quoted 300 unfurnished, and 600 furnished. I know which I'm picking!Click to expand...the furnished may take waaay longer to rent, with high turnover. nevana would be both.
In my experience furniture can attract people looking for shorter term leases and cost you more than unfurnished in time &/or money.
The shorter tenancy term and furniture creates a lot of work and therefore also cost you i.e. higher tenancy turnover = time spent doing the extra turnovers or paying an agent more letting fees than you would with longer leases + DOUBLE the time to properly check furniture against ingoing condition reports (esp. if fully equipped with linen, cutlery etc) at the turnover and many agents (rightfully) charge extra for this.
Then there are repairs. You can stipulate that furniture will not be repaired during the lease if you are concerned about this cost but it must be made clear to the tenant up front which would obviously reduce the value to them somewhat as they clearly don't want to have to buy furniture if they are looking at a fully furnished property.
As a rule I prefer to lease unfurnished property, however it really depends on your particular property and market. Although I prefer leasing unfurnished, I have a fully furnished 2 bedroom beachside unit leased out as a holiday unit because it makes more sense in the particular market it is in.
all depends on area
at the moment in perth cbd furnished rentals in new or newish apartments are going for stupid money so in that case you absolutely would furnish them. youre paying 90% of the cost of furniture in 1 yr through increased rents
I have a couple that have been going well over the last few years. As others have said, you need to be in a central spot, like southbank or inner city somewhere.
In a small <50sqm flat I have one punter stayed for 18 months despite paying 30% over the odds for unfurnished. Don't get it, but anyway, perhaps he had work paying or something?
It really depends on the area.
Although, the difference in rental amounts really doesn't seem worth it to me. You're talking $50 odd per week, but when you take into account the repairs and maintenance and the upfront cost to supply furniture and appliances really doesn't make a difference - Although there is more you can depreciate.
We have 2 fully furnished properties on our books in total, one in Melbourne CBD which rents quite easily (1 bed, 1 bath, secure car park, newish apartment), and another in the suburbs which has just come up for lease (luckily enough it's not mine). I'm almost tipping this one to take 2 months to lease, or not at all unless all the furniture is moved out, the property is also at least $150 per week above similar properties and I believe overpriced in general. The reason this property leased last year was due to the large hail storm in March, there was a small flood of business' from the country who specialised in repairs to cars etc, but now work has dried up.
Another thing to consider is, both of the properties management fees are higher as well, the city apartment is also located 35km away from our office too, which obviously increases the fees, however the suburban property is around the corner from the office, but is a 3 bedroom, 2 bathroom, double garage property and includes everything (plates, utensils and other small items) and takes hours to do ingoing/outgoing inspections.
Add to the mix that Fantastic Furniture will last about 45 seconds in the hands of a less than careful tenant (hey its not my furniture, I wont take care of it) expect to spend a lot per annum on repairs and replacement. The cost of the handyman to fix broken items ongoing will probably be more than the whole package deal.
If you are going to go down the furnished route, get quality furniture which will last a long time without hassles. It will cost a lot more upfront but will be cheaper long term and gives you more depreciation.
Additionally, tenants arent stupid. People who rent in the furnished market are often companies or executives needing a city crash pad, and they wont like paying a premium for matchstick furniture which is uncomfortable and rubbish quality.
Can't see you getting much for $1500, I saw a package advertised by another discount retailer for $4K and it only did lounge, dining and one bedroom. Fridge and washing machine will add another large amount.
I have a furnished IP, long term lease to a research centre), makes for convenience for scientists coming and going, interstate, overseas people. Had this since 2004, nothing been damaged.
You'll attract tenants who don't have furniture and want short-term stay. Thinking about the wear and tear of your furniture, the extra effort and cost of replacing them, the extra effort and cost of finding new tenants all the time (since they'll be short-term) just seems like a silly idea to me.
Ed Barton said: ↑
the furnished may take waaay longer to rent, with high turnover. nevana would be both.Click to expand...Buy in the right locale and it won't be a problem. Got a call this morning the PM has found 3 miners who are keen and the place hasn't even been advertised yet and still won't be ready for 3 weeks. (only a 3 month lease, but i'm happy with that)