We run an 'AskPeter' column in a local newspaper in WA's Pilbara. From time to time, we have people ask Peter general property investment questions and the answers in our mind are all geared to help the community make more informed decisions in property investment, regardless of their location. Through the Investor Assist blog, we'd like to share some of property questions and answers from the AskPeter column.
I am looking to purchase an investment property and I am unsure if it is best to rent it furnished or unfurnished? What is your advice? Sarah Baynton
Without knowing where you are planning to invest it is difficult to provide a recommendation but I suggest you make the decision based on the location of your investment property, the type of property and your target market. Fully furnished rental accommodation is generally highly suitable for short term accommodation, holiday accommodation, executive rentals including apartments and relocations. Unfurnished properties are often more desirable for couples and families who may already have plenty of their own belongings and are simply looking for a better property to live in.
If you are investing in the Pilbara region it is highly suitable for a furnished investment property due to the transient nature of the population and high demand for short term and executive rentals, plus shared accommodation. There is also a limited number of high quality furnished rental properties on the market so you are likely to achieve strong demand if furnished appropriately. I recommend contemporary, durable and quality furnishings.
If you are looking to invest elsewhere in WA or interstate, evaluate if your target tenants are likely to require a furnished property and what it will cost you to furnish. Will you be able to recover your outlay in additional rental income? Is it worth the exercise?
If you are still unsure, a knowledgeable investment specialist or experienced property manager will be able to research an area on your behalf and advise the most appropriate strategy. Just be sure to do your homework before buying a house full of furniture!
If you have property investment questions, feel free to email your question to AskPeter@investorassist.com.au