Investing in property might be one of the least risky investments. Many eager to invest in property to have a tangible asset with minimum risk, plus it can be a source of passive income if you decide to open for rent.
But even for some, the return from property investment is not worth the cost spent to purchase the property itself. Yet, the property owner might have spent more time, effort and money to attract tenants. No wonder some may ask themselves;
‘With this much income, when will I at least reach the break even point & start to get some profit?’
In this article we would like to share some experience in handling our property investor clients to help them increase their passive income and getting tenants more easily by applying design interior into their property.
Let us look into some benefits of design interior in increasing the value of your property for rent.
1. Full Furnished and Interior Designed Living Space is Always More Appealing.
One of the main consideration for prospect to decide to rent a place is the interior condition. The better the interior the higher the chance of the prospect to rent the place. In other words, to get that good first impression, interior design might be the best way to go. You just need to spend once in the beginning to hire professional interior designer and you’ll get the long term benefit.
2. The Interior Design is A Rental Charge Booster.
It’s obvious that a full furnished and interior designed living price has a better selling value compare to an empty space. Therefore if you are planning to do so, here’s a simple mathematics illustration to help you adjust your budgeting plan;
Say you bought a new empty 42m2 one bedroom apartment for $ 40,000 (USD) and you charged $ 300/month of rental fee or $ 3,600/year. Thus, you’ll reach break even after 11 years. Now, let’s illustrate this with Deluxe Interiors GOLD Plan, for this particular living area you’ll need about $ 5,000 to get your interior design and full furnished, electronics included. It will gives you a grand total of $ 45,000, and the rent charged is up to $ 500/month or $ 6,000/year. It will take you just 8 years to get your capital back.
3. Make Over Business
Other than renting your place, you can also get some profit by doing a property make-over business. You simply buy an empty living space, fill it with custom furniture along with the interior design, raised the selling value, then you sell the decorated property with much higher price.
Consider it as a service business as well. Decoration, renovation and construction is a very time, money and energy consuming, it needs constant supervision as well, yet the owner should manage to find and hire the right person to the construction job and the design job.
If you know the right place and the right person to do the job, you can do this make-over business. Just make sure the job is well done, and the prospect might be interested in buying and pay the right amount of money.
Property Investment is one of the most popular choice of earning some passive income. The illustration above shows that, by hiring a professional interior design service, the value of the property can be raised so that the income can be increased as well.
For more information and schedule an interior design consultation appointment, please visit our website at www.deluxe-id.com .