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IP with furniture

Discussion in 'Property Management' started by devank, 22nd Aug, 2016.

  1. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Hi,
    We bought a 2/1/1 Townhouse with staged furniture in Pasco Vale, Vic.

    I'm not sure what to do with the new furniture. Excluding Fridge and Microwave.
    I think I like to sell the furniture and rent it empty.

    Any pointing in trying to rent it with furniture?
     
  2. Chrispy

    Chrispy Well-Known Member Premium Member

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    AirBnB?
     
  3. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I'm not game enough to do that sort of stuff :)
     
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  4. Chrispy

    Chrispy Well-Known Member Premium Member

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    Its just that Pascoe Vale would be a great spot to try it. You could try month to month tenancies. It is close to the City, plenty of transport, easy access to the Airport. I was thinking about Airline Employees who get transferred here on short term contracts.
     
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  5. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I haven't had a chat with any PM's yet. I will see what they think.

    I have message 5 nearby 'Home Stylists' if they like to buy the furniture. Two of them are thinking about it.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Dont forget to consider the tax aspects.
     
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  7. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    There's no incentive for a PM to tell you to go for airbnb... they'll not make any money on it. They do however have an interest to tell you to rent it normally....

    You can always try Airbnbing initially and if it doesn't work out, you can go back to normal.
     
  8. devank

    devank Look, lets just get on with this, ok? Premium Member

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    What do you exactly mean? Do you mean getting more depreciation if we rent it out furnished? or reducing the capital cost if we sell the furniture?

    I was going to get their opinion of renting with and without furnished (given it's location as @Chrispy mentioned.

    I'm in Sydney. Even if I'm close, AirBnB isn't for me. I like hands off approach at this stage.
     
  9. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Fair enough! Yeah... I wouldnt do it interstate either.
     
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  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Part of the purchase price was presumably for the furniture. So you will need to take this into account
     
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  11. Jake Milne

    Jake Milne #1 Buyers Agent, Vic. Business Member

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    We've talked to the selling agent and there is the option of reducing the contract price for the property by splitting the furniture from it in a seperate contract. Advised that Devank should seek advice on this as there's stamp duty and future CGT to consider :)
     
    Last edited: 23rd Aug, 2016
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  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Devank should get some tax advice on the different consequences.
     
    Last edited: 23rd Aug, 2016
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  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Btw i am not sure what all the diffierent consequences could be. I would have to think about this for a while. @Depreciator would know.
     
  14. devank

    devank Look, lets just get on with this, ok? Premium Member

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    I simply don't want any trouble with the law :)

    Agent suggested trying advertising as furnished as everything looks good now. Let's see how that goes.
    Then everything is kind of fittings aren't they? Rug is just like blinds. A fridge is just like an aircon.
     
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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    The upside is higher rent but I know PMs over here charge more for furnished rentals as there is more to check at the end of the tenancy and keep a track of.
    Personally I'd give it a go and if it doesn't work then sell off the furniture
     
  16. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    At the very least you will have some lovely photos with the staging furniture to use in your For Lease adverts
     
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  17. Depreciator

    Depreciator Moderator Staff Member

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    Lots of depreciation in furniture, but additional hassles as noted. Do you have to take the furniture? Selling it after you've bought the property would be a chore. If you have to take the furniture and it is put on a separate contract with an agreed value, would it be best for it to have a high value or a low value? If you sell the furniture for less than what you paid for it, does that mean you have a loss you can claim? Does selling it for more than is on the contract mean you have made a profit and need to declare that?
     
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  18. Azazel

    Azazel Well-Known Member

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    That's true.
    Is it real furniture?
    I know some staging people use fake/not solid furniture and add covers and things to make it look real for photos.
     
  19. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Yes they are :)
    Vendor claims they spent 15K.
     
  20. bob shovel

    bob shovel Well-Known Member

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    Furnished would fall into a niche market but like anything people are chasing all sorts of different things. It would appeal to a work arrangement most likely or employer leasing for staff. There's not always a lot of furnished around so it could be in demand for that area. Worth a shot . Run the furniture into the ground then chuck it :D

    Also look into the numbers obviously it will rent higher but factor in more vacancies and any extra cleaning or maintenence

    We've leased 3 furnished places in the past, all due to work movements and the convenience. I think we ranged from 3 months to 12mths stays. I did do the numbers for renting furnished over buying the stuff, you can furnish a place pretty cheap these days with gumtree etc but it can be a pita. I would look at 12 months max if we were to go furnished again. Longer stays we'd buy -we bought now doing an 18mth stint, plus lack of decent choice

    When I worked out numbers i worked out roughly what we'd lose in buying and selling and i feel like ~40-60 pw premium for furnished. If it was over that id buy the furniture. But if you think they spent 15k you might have a flasher joint ;)
    Thats off the top of my head. I doubt i still have the beer coaster spreadsheet