How much does furnishing and renovation cost in Malaysia? This is a question many new property investors fail to take ask themselves when they make their first investment property purchase.
It is actually a very important question, that is so very often forgotten. Not knowing your furnishing and renovation costs can lead to you procrastinating on furnishing your unit. Not knowing exactly how much you need, can lead to you shopping around and getting quotes from many different contractors and ID companies, because you simply have no idea what the fair market rate is.
This can result in your property investment sitting on the sidelines for months on end while you burn cash every month to repay your housing loan. Even if you decided to go with your developer’s fully furnished package, you’ll realize that it’s not exactly move-in condition.
We know far too many investors who end up doing this and, in the end, regret their decision to have not acted sooner – looking at 6 months of lost rental income can be very, very painful.
It can sometimes be that you don’t have the cash set aside for your furnishing and renovation once you actually get your keys. After that, you then delay moving along with it because you aren’t really sure how much you’re going to need or even where to start.
The sooner you get this done, the better.
People tend to deliberate for ages on their furnishing, trying to save money wherever they can, not realizing that the longer they take to decide, the more money they actually lose.
How much does furnishing and renovation cost in Malaysia though?
There are quite a number of other websites that have given a breakdown of the rough costs involved for renovation and furnishing such as here on Propsocial’s – Breakdown of Renovation Costs in Malaysia, or here on Qanvast – https://qanvast.com/my/articles/how-much-does-it-cost-to-renovate-in-malaysia-928, but are these prices really realistic for the investor?
We’ve helped you break down these costs and focus just on the most important necessities here for you though, just in case, you’re short on time.
Average Furnishing Costs in Malaysia
For a 2 Bedroom Condo
All Loose Furniture*: [RM12,000]
Kitchen Cabinets & Island Table Top [RM10,000]
All Electrical Items# [RM6,500]
Fans & Lighting Fixtures [RM3,000]
Décor Items [RM2,000]
Plaster Ceiling [RM3,500]
Painting & Wallpaper [RM1,500]
* All Loose Furniture includes – Sofa, TV Console, Coffee Table, Side Tables, Bed Frame, Mattresses, Lamps, Shoe Cabinet, Dining Table Set, Clothes Rack, Wardrobe
# All Electrical Items includes – Fridge, Washing Machine, Bathroom Water Heaters, Cooker Hood and Hob, Microwave, Kettle, Standing Fans
Sure, these websites make good sense when people are looking at renovation and furnishing for their OWN home, but does the property investor really need to come up with more than RM40,000 to ready their property for a tenant or short-term guests?
Taking a quick browse around the market, you’ll notice that you’re really going to have to come up with about RM35,000 at the very least for furnishing your bare 2-bedroom unit to an acceptable standard (without the additional luxuries) and you’ll have to hope that the developer was kind enough to include aircons in your package if not you’ll have to come up with another RM3,000 for another 2 units and even more if you’d like air conditioning in your hall.
It is possible to spend less than this and beat the margins of your furnishing or ID company, but do you really have the time?
Time is Money
Ordering your furniture online or from Ikea means that it’s going to come in a box and you’re going to have to fix it together yourself. Also, some things come without screws and require a drill to be put together. (Thanks a lot Ikea!)
If you buy from Ikea, you can pay them to do this for you, but the assembly rate is 8% plus a fee per assembled item. Expect to pay a total of 20 – 30% more for your items if you want them to assemble it for you. (Other online purchases don’t offer any assembly services at all)
Most items at Ikea are already pretty expensive when you compare it with prices of things you can get elsewhere online, so with that added 30%, it really doesn’t make it worthwhile anymore at all. I’ve bought some pieces of furniture online that’s taken me more than 2 hours to fix together – not the most beneficial use of my time. (And not an experience I’d like to go through again)
I’d assume it wouldn’t be the best use of your time either.
This is also not including the time you’ll need to plan your layout, decide on furniture items, communicate with sellers, organize delivery and spend the time to be there waiting for the delivery.
If you’ve ever purchased furniture, you’ll know that delivery times are always a range. The company will tell you, delivery is from 3 – 5pm. Yet, at 5.45pm you’re still waiting at the apartment for the delivery guys cause they’ve either gotten lost or were held up at the previous place they delivered items to. Sometimes you can even lose up to a whole day waiting on a delivery.
So, it boils down to how much you really value your time or if you even have that much time to spare.
You’ll probably be able to save yourself about 20% of the costs doing things on your own if you have the time and patience, which means you’re still looking at about RM28,000.
The Investor Package
At Rent and Returns though, we’ve been through all these hassles before and looked at all the various ways to lower this price for furnishing our own units. We spent much more than RM35,000 on our first unit and we’ve steadily been bringing down our costs through new connections and relationships with suppliers.
We’ve been able to come up with a fully furnished, modern ID, ready-to-move-in, quality furnishing package (that’ll be ready within a 30 days) that includes everything from kitchen cabinets and curtains to all your loose furniture and electrical items at just RM23,888.
Get in touch with us to find out more!