Are you a home investor still stuck with a vacant unit? Jimmytan, Design Principal of Mood Design Solution (MDS) advises how you can get out from this predicament.
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My objective and the current market sentiment
I am a professional interior designer and have invested in a property before, so what I am sharing here is based on my knowledge and experience. Years ago, I was the owner of an empty unit which nobody would want to rent or buy. I have sleepless nights and cold sweats just looking at the pile of demand letters from the bank’s lawyer sitting menacingly on my desk. Whenever the phone rang, my heart would skip a beat. After doing some research, I could finally understand why there were no takers. It was just an empty unit without anything special to make it outstanding. That was when I decided to give it an Instagram-worthy makeover. I did just that and before long, a buyer knocked at my door and a deal was sealed. My nightmare ended and I had back my peace of mind. In my case, furnishing made a big difference. Like it or not, this is the current sentiment in the property market. You could not run away from this reality if you want to stay competitive in this game or be ahead of others.
Interior design by MDS Design Solution
To furnish or not to furnish
This is a million-dollar question that will make or break your investment. Some home investors could not make up their mind whether to take up this add-on or not. Others simply dismiss it as unnecessary. It is understandable given that many home investors have the impression that furnishing your property will cost you an arm and a leg. This should not be the case. With proper financial planning, you can get your unit nicely spruced up and at the same time, continue to maintain your current lifestyle and also, to be able to pay for your children’s education. Depending on your budget, there are two types of furnishing you can actually choose from – semi furnished and fully furnished. Semi furnished means you can get built-in kitchen cabinets and bedroom wardrobes as well as partial electronic equipment such as air-conditioning for the bedrooms and also the living room. Of course a fully furnished unit offers much more besides the basics. Apart from built-in kitchen cabinets and wardrobes, you will also get loose furniture for the living and dining room as well as the bedroom. Electronic equipment such as a refrigerator, washing machine, television and air-conditioning are included as well.
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You have options!
To some home investors, money is not a problem. However, if you are cash strapped, this can pose a hindrance to your plan to upgrade your property. Assuming the total furnishing cost is a modest RM35,000 and the most you can spare is RM10,000 which means you are still short of RM25,000. If you are one of those who do not have any friends or relatives to turn to for borrowing purposes, then you can still turn to the bank for an additional loan. HSBC is one such bank. For a loan of RM25,000 which can be payable in 36 months, an interest rate of 3.88% per annum will be imposed. Let’s say the monthly rental for a fully furnished unit is RM2,800 while a partially furnished unit is RM1,800. The difference is RM1,000. If you take up this loan and pay a monthly installment of RM775 to the bank, you will gain an extra RM2,700 per annum and at the same time, your unit is now fully furnished and occupied!
Now, isn’t this something worthy of your consideration?
This article is contributed by Jimmytan.
ABOUT THE AUTHOR
Jimmytan is the Design Principal of Mood Design Solution (MDS), an exciting and innovative interior design firm in Malaysia. After graduating from his interior design studies, he started his practice in 2000. With experience in interior design for the retail, corporate and residential sectors, Jimmytan emphasizes quality and efficiency in his designs. “It’s important to always work out the most efficient solutions based on client’s requirements. The client is the king yet when he or she engages the designer, a certain level of trust is crucial to execute it. A sense of ownership will create the best result,” says this talented designer. “Ultimately, design efficiency is important – in the long run this approach will be cost saving.” Jimmytan currently resides in Kuala Lumpur and loves working out, doing yoga as well as immersing in property investment studies during his free time.
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