Fridge/freezer+washing machine=more value?

I am buying my first IP- a one bedroom apt on Toorak Rd in Melbourne.
Question: Will furnishing my apartment with appliances increase its value or would my future tenants prefer to move in with their own fridge/freezer and washing machine?
 
I am buying my first IP- a one bedroom apt on Toorak Rd in Melbourne.
Question: Will furnishing my apartment with appliances increase its value or would my future tenants prefer to move in with their own fridge/freezer and washing machine?

I don't like answering a question with a question, but "who are your tenants?" The answer to this will more than likely give you the answer to your own question.

Come up with a list of potential tenant profiles and group them into whether or not they are likely to have these items already.

eg, Students and first-out-of-homers probably WON'T have these appliances; young professionals or couples, will. If you're pitching at the corporate rental, then you will need to supply these (along with all other furniture and fittings!)

Also, can you get extra rent WITH those, or will you limit your tenant pool?
 
Wobby makes a good point about limiting your market. Speak to a few agents about the demand for furnished places & either furnish or don't. I'd be tempted not to do it unless you have a euro laundry, for instance, as not many people will have a washer/dryer.
 
I haven't looked at your market but i would probably think either all the way or half the way. If you fully furnish it you are looking for people to pay a premium for a move in and live with no hassle, if its unfurnished you are aiming at the bulk of the market who have there own crap. Where as in this setup you are looking for those who own a TV, sofa, table, bed, etc.. but not white goods. Its a bit of a small market and i am unsure of how much of a premium they would pay.
 
What does your property manager say/ I'd start listing it as unfurnished, then see what sort of response/rent you get. Investigate the furnished option down the track.
Note, usually furnished places get more rent, but are on shorter leases, and can be vacant for long periods. I'd suggest for your first IP to start with a boring old unfurnished rental. Do some research on serviced rentals for the next one if thats what interests you.
Note, if you rent it with an appliance, you then have to take responsibility for repair and maintence of the appliance as well.
 
Thats all excellent advice! - Figure out your target market and talk to local property managers about what to do.

Just to give you a bit of inspiration, here is an example of a client of ours who renovated their property and included whitegoods when they re-rented it out.

As part of their reno, they also added a very small extra room by building a wall off the lounge. Take into consideration that this reno took them less than a month!
Purchase price - $270k
Pre-reno rental - $240/wk
Reno costs - $15k
Re-val after reno - $375k
Post reno rental - $375/wk (incl whitegoods)

Property increased in value $105k (less costs) after they reno'd the way we'd suggested.

Go get 'em!
 
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