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Increasing yield through furnishing

Discussion in 'Real Estate' started by Jacque, 10th May, 2007.

  1. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
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    Location:
    Sydney
    Out and about today for a client, I came across a unit that's likely to sell for between $520-540K realistically. A similar unit in the same building (same size and similar outlook) is currently being advertised for rent fully furnished for a whopping $900 a week! This got me thinking..... naturally :)

    I know there's a huge demand for furnished rentals in some parts of major cities, especially for short term executives and relocating individuals/families. Prices and type of accommodation range from your cheap bedsit type places inner city (think backpacker style) through to whiz bang executive roomy apartments with all the mod cons, overlooking water.

    Has anyone here had any success with furnished rentals in major cities, and, if so, how did their vacancy rate compare to a more permanent rental unfurnished? How did you go about managing, advertising etc?
     
  2. handyandy

    handyandy Well-Known Member

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    6th Jun, 2006
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    Location:
    Sydney Nsw
    Hi Jaque

    Don't forget that out of the extra $400 comes the depreciation of the furniture and also there would be hefty weekly service costs.

    Cheers
     
  3. crc_error

    crc_error The Rule of 72

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    Location:
    Melbourne, VIC
    not to mention the shorter lease contracts you will get, so higher advertising and agent fees.
     
  4. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
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    Location:
    Sydney
    I'm aware of all the downfalls :)

    So no one here with experience doing this type of leasing?