May 2024 newsletter Why have Landlord Insurance? TIPS AND INSPIRATION FOR SAVVY PROPERTY INVESTORS Tailor your cover: You can customize your insurance based on factors like budget and property age. Most policies offer public liability insurance, adding an extra layer of protection if a tenant gets injured. Understand What Isn’t Covered: Landlord insurance doesn't cover general wear and tear, damage caused by you, or pest infestations. It's crucial to read the terms and conditions of your policy to know exactly what's excluded. Essential for Property Investors: Landlord insurance is a must-have. It protects against everything from rent defaults to unexpected disasters. Plus, it's tax-deductible, helping with annual expenses. Do your research and talk to an advisor to find the perfect coverage for your needs. So, here's the scoop on what landlord insurance doesn't cover. Think general wear and tear, damage caused directly by you (sorry, no coverage for DIY mishaps), and pesky critters like termites or rats. When you're scoping out insurance policies, it's super important to read the fine print and know exactly what's not covered. Bottom line: landlord insurance is a must-have for property investors. It's your safety net against everything from rent defaults to unexpected disasters. Plus, here's a bonus – it's tax-deductible! So not only does it give you peace of mind, but it also helps with those annual expenses. Just be sure to do your homework and chat with a pro to find the right coverage for you. R e m e m b e r , t h i s a r t i c l e i s g e n e r a l i n n a t u r e a n d i s n o t f i n a n c i a l o r l e g a l a d v i c e . P l e a s e c o n s u l t y o u r p r o f e s s i o n a l f i n a n c i a l a n d l e g a l a d v i s o r s b e f o r e m a k i n g a n y d e c i s i o n s f o r y o u r s e l f . morerealestate.com.au 03 6231 9006 The importance of landlord insurance The insurance you need for an investment property differs from the insurance you need if you’re an owner-occupier. Landlord insurance provides cover and peace of mind from a range of potential problems, such as loss of rent, property damage or major repairs that make your property untenantable. Keep reading below for an overview of why landlord insurance is important. Let's break it down with some bullet points: Protect Yourself and Your Property: Owning an investment property can get pricey. You've got mortgage payments, repairs, and maintenance to think about. Landlord insurance covers three key areas: loss of rental income, contents, and building. Loss of rental income covers scenarios like defaulting tenants or untenantable property. Contents cover protects furnishings from tenant damage or natural disasters. Building cover shields against damages caused by tenants, like accidental breakages or pet mishaps. Suite 3, 83 Main Rd Moonah 7009 SMSFs: A Good Fit for Some: Women and primary caregivers, often with smaller super balances, can benefit from the autonomy of an SMSF. Buying property through an SMSF can offer tax advantages while bolstering retirement savings. Keep in mind, there's a minimum balance requirement (around $200,000 currently) to make the administrative hassles of an SMSF worthwhile. In the quest to build wealth for your golden years, seeking expert guidance tailored to your needs is paramount. Start researching today and seek advice on the best path forward for you. Do you have a Depreciation Schedule? You may not know that you can claim depreciation on your investment property chattels in Commercial, Domestic, Air BnB and Holiday Rental properties. If your property was built or renovated after the 15th of September 1987, there will be depreciation to claim. If you purchased fixtures and fittings in recent years and have proof of purchase, chances are that you have more depreciation to claim. NOT CLAIMING DEPRECIATION IS LIKE NOT CHARGING RENT Contact us today Should you keep your money in super or buy a property through an SMSF? Building up a nest egg to live off in retirement or to grow generational wealth is important to investors. No matter how much money it would take for you to live comfortably and have financial independence, the road to get there requires careful consideration. Let's weigh up the options. Considering Annual Returns: Typically, investing in equities like ASX200 or S&P500 can yield around 8% annually over a decade, factoring in market fluctuations. On the property front, prices tend to double every ten years, provided the property is in a thriving area with high rental demand. Opting for a more budget-friendly property in a less central location might seem appealing, but it could mean lower rental yields and growth potential. Time Horizons Count: If you're young with time on your side, taking the plunge into property investment might pay off in the long run. However, if retirement is looming, tying up your funds in assets that require a lengthy hold might not be the best move. Consulting a trusted financial advisor is key to aligning your investment strategy with your goals and timeline. Is buying an apartment a good investment? Do you need help with refincing your investment loan? R e m e m b e r , t h i s a r t i c l e i s g e n e r a l i n n a t u r e a n d i s n o t f i n a n c i a l o r l e g a l a d v i c e . P l e a s e c o n s u l t y o u r p r o f e s s i o n a l f i n a n c i a l a n d l e g a l a d v i s o r s b e f o r e m a k i n g a n y d e c i s i o n s f o r y o u r s e l f . morerealestate.com.au 03 6231 9006 We have solid long term relationships with trusted financial and insurance brokers to refinance or find a better insurance deal. Reach out and let us know if we can assist. There are many bank and non- bank lenders available that can assist you in getting a better financing outcome. Suite 3, 83 Main Rd Moonah 7009 More than a feeling! Angela 0419 171 982 Leanne 0408 128 325 Depreciation