All Topics / General Property / Furnished flats
I purchased 2 blocks of flats in Wup-Wup[], all tenanted, and all +CF
To my surprise, (yes I was totally unaware) I found out just a few days ago that I actually own the furniture as well.Does any of you own a furnished property, and what is your experience?
May God bless you
and prosper you.
MarcHi,
My mother had a furnished unit and it was a nightmare, not only do you have to tend with the everyday things that go wrong with a premises, you have to tend to the furniture breaking down as well. She would get phone calls saying ” the washing machine has broken down” then “the tv doesn’t seem to be working properly” etc etc. I suggest if you decide to rent out fully furnished, then make the rent money worth the hassle, as you will get hassled.
Hope this helpslj
My bias would be towards unfurnished, unless you were willing to be an active PM who lives near their IPs.
Furniture can make a cf- property cf+. For example, in a town I know where unfurnished units typically yield 8-10%, furnished places can fetch 10-12%.
There are also tax benefits of having heaps of depreciating furniture, but eventually it will need to be replaced, providing more costs for you.
I can see their advantages in mining towns, remote places (eg Darwin) and capital cities where there are professionals on short term contracts.
Another issue is that PMs might charge more (10% instead of 8.5%) and tenants may be more transient with more vacancy.
I would also be concerned that a newish 1br ff property, for example would be more vulnurable to labour market changes than (say) a 2-3br u/f unit which would appeal to a wide cross-section of locals.
Also where I’ve been looking some one bedroom ff places can be almost as expensive as 2-3br u/f which I consider are overpriced.
Because I’m a fairly passive investor who wants long-term tenants my bias is thus for u/f units in a handy location. And by making that choice I don’t think I’ll be worse off than people getting higher (but more volatile) yields from f/f.
Peter
unfurnished I feel is better
people pinch stuff they dont value it…..Hi Marc1,
My experiences have been all good. A $50 (now $70) per week rent increase with no problems with tenants whatsoever.
Mind you I have targetted a niche market – overseas students in a property close to a reputable university in Perth.
Derek
One of my properties is furnished and I have had no issues at all.
I think the trick is to choose your tenants carefully, do a complete inspection with photos and make sure the furniture actually looks nice so that they do respect it.
An additional $40 a week makes me smile all the way to the bank!
Cheers,
A” plays well with others
… but sometimes runs with scissors”
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