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Advice on investing @Moonah Links Golf Resort

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Teresa | 16 Aug 2013, 11:12 AM Agree 0
Hi,has anybody bought a fully furnished apartment here&What are the disadvantages as a first time investor???Thankyou
  • Eos Property | 16 Aug 2013, 04:10 PM Agree 0
    Hi teresa,

    Haven't invested in the area but have had furnished property in the past.

    Typically furnished property earns extra rent. On top of this the furniture depreciates much faster than the building so your depreciation claims, in the early years, are very attractive. Be aware you may incur additional maintenance costs due to damage to furniture and it your property is fully furnished (bedding, utensils etc) the property manager may charge extra for inspections and renewals because of the additional diligence required by them.

    Should you furnish Moonah - best talk to a few agents and not just the ones involved in the sale to see what the level of demand is like. No point throwing $20K (or thereabouts) into a unit if the demand is not there.

    If there is demand for the units find out what the tenants want - are they professionals wanting high spec furnishing or is Ikea grade OK? On top of this you need to determine ongoing demand - if you find yourself having to move your furniture out because an incoming tenant doesn't have any then where are you going to store it?
  • Teresa | 17 Aug 2013, 04:55 PM Agree 0
    Thank you Eos Property for your advice.The apartment comes fully furnished &quality is solid & looks really good.Clientele will be either golfers or girls get togethers or couples wanting to use peninsula hot springs 4min drive from apartment & 8mins to the beach..Average rates $200 night...it will be rented as a private apartment and not part of a pool...1hrs drive from Melbourne is just nice for a1,2 or 3 night stay..
  • Eos Property | 17 Aug 2013, 07:01 PM Agree 0
    Sounds like a service apartment type deal.

    Would pay you to check your mortgage documents to see what sort of loan structure you have. Typically banks are more reluctant to lend at 80% (or thereabouts) and as a consequence larger deposits are often required.

    Was this the case for your purchase?

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