Furnished IP's

From: Property Investor


Hi Everyone.

Can some of you please help me out with some advice in regards to buying furniture for an IP, the issues with purchasing, pitfalls, etc.

I will be purchasing a beach property with a magnificent view in a very popular holiday area, therefore I want to purchase furniture to make the leasing side of it easier and to maximise profits and a good return on investment.
The feedback I'm after is costs involved on furniture, cleaning costs involved in maintaining property clean for the ongoing new tenants, etc.

And anything else I may have overlooked.

I would also like to take the opportunity to thank to all of those people that have responded to some of my postings in the past.
I believe we probably have some of this country's best property investors right here in this forum.

Thank you very much.
Mannie.
 
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Reply: 1
From: Jay Hunter


Hi Mannie,

I think it depends on what type of tenants you will be trying to attract...

Are you focusing on short term accomm ? Being a place in a holiday area and with water views this may be a great option...

we are luck enough to have a unit with much the same attributes but have decided to live in it for a while... it was unrenovated when we bought it and have done the following so far: it has made one huge difference!!

1. Put timber floors down instead of keeping the old carpet

2. Painted the place throughout and put a Blue colour feature wall (keeps with the beachy relaxed feel...

3. we have not got it yet but a nice mirror to reflect onto the water... this brings the water into the place even more...

4. keep with the beach/water theme when selecting furniture etc... keep it simple and relaxed.

can you tell us what area you have bought in... all the best.

jay
 
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Reply: 1.1
From: Property Investor


Hi Jay,
Thanks for your reply.

The property is new, therefore will not need any renovations.
I don't think I will need a mirror (even though I agree with you and also the blue beachy theme) because it has windows half way around the house and you can see the panoramic view while you sit in the lounge.
The property is located somewhere on Phillip Island.
Please let me know how many weeks in the year where you able to let your property out for?

Regards,
Mannie.
 
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Reply: 2
From: Miakat .


Hi Mannie,

Have you read the article in the latest Australian Property Investor Magazine, on Furnished property. It may be worth a read if you are looking to head down that path.

Miakat
 
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Reply: 2.1
From: Gibson Nolte


Miakat beat me to the punch on the API Mag suggestion. Some interesting ideas in the issue - sounds like lots may not apply to you but there might be some food for thought there.

Cheers,
Gibson
 
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Reply: 2.1.1
From: Property Investor


Thanks guys,

Much appreciated!

If anyone out there has a property that they lease which is furnished, I would love to hear first hand from you on your experiences with these sort of investments.

Thanks,
Mannie.
 
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Reply: 2.1.1.1
From: Paul Zagoridis


Hey Mannie

Lots of war stories are in the archives. Please do a search on Furnish or Furniture. A lot of them made it into the APM article.

Some of them are worth the read. (Yeah I think mine are cute).

It's really about your perspective and goals from the property. You seem to understand the pitfalls.

Paul Zag
Dreamspinner
WealthEsteem coming soon at...
http://wealthesteem.dyndns.org/
 
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Furnished IPs

Reply: 2.1.1.2
From: Joanna K


This is a multi-part message in MIME format.

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Hello Mannie,

I have a client who purchased an OTP at an extremely inflated price =($560,000). The agent couldn't lease it at $500/week so he thought he'd =made a mistake and bought a dud investment. Tried to re-sell it via =auction; passed in at $430,000.

I came across this guy and after learning about his difficulties =convinced him to furnish the apartment and turn it into a serviced =apartment. So, we spent a few weeks furnishing, connecting telephone, =foxtel etc etc.

Now, it's leased at an average of $1,100 per week. In the last 12 =months that its been operating he's had only 4 weeks vacancy and the net =income generated from this property is around $42,000 compared to a =gross income of $26,000 on a normal unfurnished 12 month tenancy.

Now, he wants to set up more apartments like this.

He pays for electricity, foxtel, 10% management fees, telephone line =rental (occupant is charged usage), cleaning once a week when the =property is occupied and drycleaning linen and towels once a week (when =the property is occupied).

A good property manager should be able to do this for you if the =location is right.

Kind regards

Joanna Karavasilis
Principal
The Rental Specialists

PH: 02 9599 3363
FAX: 02 9599 3447
EMAIL: rentals@rentalspecialists.com.au
WEB: www.rentalspecialists.com.au




------=_NextPart_000_001F_01C1A325.B1D30A80
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charset="iso-8859-1"
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">






Hello Mannie,

I have a client who purchased an OTP at =an
extremely inflated price ($560,000). The agent couldn't lease it =at
$500/week so he thought he'd made a mistake and bought a dud =investment.
Tried to re-sell it via auction; passed in at $430,000.

I came across this guy and after =learning about his
difficulties convinced him to furnish the apartment and turn it into a =serviced
apartment. So, we spent a few weeks furnishing, connecting =telephone,
foxtel etc etc.

Now, it's leased at an average of =$1,100 per
week. In the last 12 months that its been operating he's had only =4 weeks
vacancy andthe net income generated from this property is around =$42,000
compared to a gross income of $26,000 on a normal unfurnished 12 month
tenancy.

Now, he wants to set up more apartments =like
this.

He pays for electricity, foxtel, 10% =management
fees, telephone line rental (occupant is charged usage), cleaning once a =week
when the property is occupied and drycleaning linen and towelsonce =a week
(when the property is occupied).

A good property manager should be able =to do this
for you if the location is right.

Kind regards

Joanna Karavasilis
Principal
The Rental Specialists

PH: 02 9599 3363
FAX: 02 9599 3447
EMAIL: rentals@rentalspecialist=s.com.au
WEB: www.rentalspecialists.com.au=




------=_NextPart_000_001F_01C1A325.B1D30A80--
 
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Furnished IPs

Reply: 2.1.1.2.1
From: The Wife


Joanna,

This is brilliant, well done.

Most property managers cannot do this for you, as they are not capable, well done to you for being several cuts above the rest!

I am sending this post to all of the people who manage my property, I would convert to you if I where in Sydney, ( which I'm not:eek:(

Cheers, TW
 
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Furnished IPs

Reply: 2.1.1.2.1.1
From: Property Investor


Thanks everyone for your views and advice.

Joanna,
In regards to the Property Managers for my property, I don't have much to choose from, there are about 4 or 5 in the area. Only 2 of them do holiday rentals, which is basically on a minimum of a weekly basis.
Therefore for what you suggest I believe you would get much better returns if the Agency dealt rentals on a daily basis.
This is not possible due to the small number of staff.

Any other suggestions would be greatly appreciated.

Regards,
Mannie.
 
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