Furnishing an Overseas Investment Property.

Property Showrooms strive to deliver the best information and guidance when it comes to overseas property investment.  That’s why we asked Jonathan May from Furniture Direct Worldwide about what’s involved in furnishing an overseas investment property.

What’s the most common concern about furniture expressed by property investors?

There’s a multitude of concerns, but I suppose the main one is “How do I know I am using the right company?  That’s easily answered.  Ask yourself the following questions:

Why did I buy the property?

What do I want it to do for me?

Can the furniture company help me achieve these goals?

If you bought the property “off-plan” it is likely that you wanted to attain some capital growth.

In which case you will need to have a medium to long term plan for the property, which more than likely, will involve you renting the property until you can sell and realize the profits.  That means furnishing your investment to a standard that will be attractive to the majority of holiday-makers.

Secondly, you need the property to be rented for the maximum amount of nights possible to support a mortgage or other costs associated with owning an overseas property.

Therefore, you need to ensure that your chosen supplier can assist you in achieving your goals and are not just trying to make a sale!

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What type of things should a rental property have installed?

Again, that is a common question. Many companies offer cut glass decanters, designer linen and many other items that sound great but in practice are impractical and unnecessary.  A good furniture package should have all items required for the rentals market and nothing over and above that.  A good supplier will always be able to demonstrate to you the reasons for items to be included and the reasons for items not to be included.

How much should it cost?

That’s dependent on the type of property you have purchased, which country it is in and what the developer included.  Most of the time you will find that what an estate agent has told a client with regards to furniture is quite a way off the mark, for no other reason than they don´t understand the industry it is simply not the area of expertise!  You wouldn´t to a dentist to have an eye test!!
It’s not just about supplying item of furniture it’s a complete comprehensive furnishing solution.

When should I buy my furniture?

This is one of the biggest mistakes made by investors.  Many people, on advice given by those not in the furniture industry choose to leave it to the last minute.  Any reputable supplier will not only have a manufacturing and supply time of around 8-12 weeks, but should also have a healthy pipeline of installations to carry out.  It’s for that reason that you will find many of the seasoned investors order at least 12 months in advance.  This ensures two things.  Firstly, your price is protected against future increases and secondly, and most importantly, ensures your property is scheduled properly on the suppliers’ installation queue and you don’t miss out on those valuable rentals in the first 6 months of ownership. 

How will I know that my furniture has been installed?

Reputable suppliers should be able to give you an installation date based on your completion date and time of order.  They should also be able to provide you with evidence of the finished installation, usually by way of photographs.  This not only gives customers peace of mind but ensures that your investment can do what you bought it for and generate you an income!

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