FAQ & Tips

Financial

According to Damian Collins, managing director of Momentum Wealth, “the main benefit of furnishing your investment property can provide additional returns above the standard rent on a property.” People are willing to pay more for the convenience of moving into a furnished place, as well as the benefit of shorter-term stays that are associated with furnished properties. In addition, Lindy Bonnett, founder of Homely Houses, points out that landlords of short stay furnished apartments aren’t bound by leases or regulations as to how much owners can charge or when to increase prices. “This give you flexibility in moving your pricing with the market,” she says.

Short term leases

Furnished apartments are the perfect solution for vacationers, students, traveling business professionals and expatriates working overseas on contracts. Short stays provide higher turnover and allows owners to inspect the property more frequently.

Better tenants

“If you are leasing a property in a city centre, you may attract a business traveller who does not want to spend several months in a hotel room or a serviced apartment,” says Anne Warren, director of True Property Management. Furnished apartments – particularly those in the CBD, attract professionals from corporations who are not only willing to pay a higher rent, but are generally less likely to damage the property or behave unacceptably.

Tax advantages 

“Depreciation is always a good advantage – other tax advantages may depend on the type of dwelling it is (separate house, apartment in a managed complex) and your tax advisor will need to advise you on these,” advises Bonnet. According to Collins, furniture can typically be written off at a reasonably rapid rate.

Staging is an investment.

A thorough and professional staging effort can be the leading reason a property sells quickly, and in many case for over the asking price. If a property is styled and furnished in good taste, with flair, it translates into competitive offers, increased demand and a higher sale price. A staged home will show better than its competitive properties; more often than not, the cost of staging comes back to a seller many times over in the final sale price. The benefits of marketing a home that has been thoroughly styled and prepared for the broader buying audience outweighs the initial expenses and yields a far greater return.

Staging should help potential buyers see how a property will fit their lifestyle.

A staged home will show better than empty properties. It’s important to trust your real estate agent, who knows the value of not being penny wise and pound foolish, but to see beyond the cash outlay to the final sale.

The end goal of property styling is to sell your property for a higher price than you would fetch unfurnished. A survey of the top real estate agents in LJ Hooker’s Australian network revealed that styling your home could boost the final sale price by between 7.5% and 12.5%.

“Look at every piece in your home and ask yourself, ‘Is this contributing to the story I want to tell in this space? Does it have sentimental value? Does it remind me of something that makes me smile?’ Or is the item just crammed onto a bookshelf or side table because you’ve been too lazy to take a hard look at things with a discerning eye? It’s important to donate or sell these items because you have to give the pieces you do love room to breathe.”

“Texture is a bullet train to a sophisticated neutral palette. Woven pieces, hand-knotted rugs, fringed accents—these invigorate and add dimension to any space. They pair nicely with crisp contemporary pieces, as well as with antique furniture and vintage items. And then plants and flowers make a space feel alive. They just make you breathe a little different. We keep fresh flowers in our home constantly—always similar species, white roses or hydrangea, packed tightly in a short vase.”

Contrary to what one might assume, staging goes beyond furniture placement and filling a house with inventory. Basic furniture installation and placement give a buyer an understanding of how to use a space or how to best place their own furnishings.

Clever property marketers create a display suite that showcases not only the new premises but the lifestyle that goes with it.

An effective property will form an instant emotional connection with buyers

Know who your buyer is then give them value, form and function.

Inspire buyers to visualise themselves “at home” in your property.