Viewing Single Post From: Business as Usual

Viewing Single Post From: Business as Usual
Tyke	Jul 30 2008, 05:56 AM
Happy in Onkaparinga Hills Posts: 237 Group: Members Member #228 Joined: April 25, 2008	Nothing wrong with asking at all Paul. Our set up came after years of careful consideration. We've always dabbled in property and long term it's the way to go. At the moment property prices are beginning to slip a little here in Adelaide - I'm not worried as I know they will go up and beyond again. The idea for furnished rentals came from our first stay in Oz in 1997,we actually rented our friend's sons house furnished - we really did want to taste the life here and not be isolated in a hotel. You really have to have a strategy and plan B. If we found the furnished rentals to be unsuccessful we would drop the houses back to long term rentals. Our financial situation means we don't worry too much about mortgage repayments which gives us much less pressure of filling vacancies. Finance should be no problem ,banks will just lend as an investment mortgage.They won't care if it's short or long term. Buying property is a "Good debt" by the way.Sometimes it's tough but you have an appreciating asset you can dispose of - unlike other stuff you can get on finance. A good accountant is essential - depreciation,offsets,building costs and so on are a great benefit to the finances. To fit out and furnish budget for around $20,000 tops,this should take care of all furniture,fitments and decorating. Not sure if you would get that bit financed easily though. The set up should be neat and friendly - almost minimal. Fittings and furniture should be not too expensive - I guarantee you'll have to replace on a regular basis. It's certainly not as profitable as some may think,there are a lot of costs such as utilities and upkeep. How is the competition your way?? When we started up there was only one other person on the forums in Adelaide doing this - now there are several. Can you stand fallow periods??? The mortgage won't go away. We do have vacancies that cannot be filled,we said if we can fill for 40 weeks of the year we'd be happy - done that The trouble is that less are coming out at the moment,booking and inquiries have gone down - mainly due to the economic situation in the UK and poorer exchange rate. Not sure how it's going to go but I'm sure the owners with heavy mortgages will be sweating. The set up looks easy but sometimes it can be hectic. With 2 houses it can be fun when we have guests leaving on one day and new ones arriving the next - cleaning a house for new arrivals takes around 5 - 8 hours + gardening + cleaning windows. There has to be a high standard. You might work all weekend. Are you flexible for your arrivals?? We've had from 6.00 am to 12.30 PM - hard to keep to a check in /check out time. Regular maintenance is the key - if it looks a little tatty - replace and repair instantly. Hope this helps - suppose I have divulged a fair bit of info there but it's to the point and will help
	Quality furnished ,short term rentals.2 beautiful houses,in Woodcroft and Seaford. "Home from Home" Auseelife

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