Furnished or Unfurnished

[WebBoard]

From: Adrian Johnson


Furnished or Unfurnished that is the question.
A few basic questions from someone who is new to this game, can anyone help.

Are the majority of IP's let furnished or unfurnished in AU, and if furnished how much is this reflected in the rent received.
Also after looking at lot's of material related to IP's in AU I have read the average vacancy rate is around 2 to 5% pa, this seems very very low or is it ??
I am primarily interested in the outer suburbs of north Brisbane and was interested what demand is like in the area.

Thanks AJ

 

[paulzag]

Reply: 1
From: Paul Zagoridis


Hehehe nothing like a new question to stir up debate. Wade in everybody!

I have let both furnished and unfurnished. Unfurnished wins.

I've missed out on tenants because they
1)don't like the furniture
2)have some furniture and it didn't fit/clashed.
3) "could I move the fridge/lounge/bed out?"

Wear and tear on furniture is higher.

Tenants without furniture move more (no moving costs! It just cost me $4K to move!!!!)

Now some people get greater returns through judicious use of furniture. But I think that is market or region specific.

With rising vacancies the rule is to distinguish your IP from the competition for the most tenants that suit your IP.

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz

 

[WebBoard]

Reply: 1.1
From: Adrian Johnson


Good points thanks very much for that.
Regards AJ

 

[michaelg]

Reply: 2
From: Michael G


Hi,

"I've heard" that in some asian countries (I cant remember if its Singapore or Taiwan) that the cost of moving is so expensive that the culture is just to leave the furniture there when you leave, and basically start over again with a new look and throw out the stuff in your new place.

Quite a different way to live. Save on removalists

Michael G.