Should I Furnish my Investment Property?

Furnishing your apartment can have some surprising benefits including: higher rental returns, a less competitive market and claiming depreciation costs. Additionally, if your property is a little on the ‘shabby’ side having a good interior designer come through and spruce the place up can bring it back to life. However, before making a decision about whether or not you want to furnish your apartment you need to ask yourself 2 important questions.

‘WHO wants a furnished property?’ and ‘WHAT about your property makes it appealing for these people?’

If you are investing in furnishing your property you should have one main goal and that is to yield a higher return than what you’ve outlaid.

Have a hard think about who would pay a higher rent for the convenience of a furnished apartment

You should come up with answers such as:

  • Business travellers
  • Students
  • Overseas travellers
  • People going through a break up

I’m not suggesting you fill your investment apartment with tissues, chocolate and sad romantic movies like The Notebook (in the case of break ups and business men), but if you follow this path it is a great idea to purposefully cater to your chosen target audience.

For example if you are targeting business travellers it may be important to install a work station and be close to or within the city for easy access to work, business dinners and late meetings, whereas overseas students tend to favour properties close to university and/or public transport with common areas for study and socialising.

If you’re going to furnish your property, understanding who your target audience is, whether your real estate suits them and how to advertise it is going to be imperative.

Therefore, if your property is a small apartment/unit/studio is in a great location, if you can deck it out in a way that will be appealing to your target audience and you are willing to take the risk of a higher turnover- by all means furnish away.

However, you may find that properties such as large family homes or larger share houses may not be appropriate to furnish as these audiences tend to already have their own furniture, and the presence of furniture in your property will inhibit their space.

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