As the one of Perth’s leading property managers, we get a lot of questions from those who are thinking of buying investment properties. They basically want to know what they need to know to be a landlord, and if it is worth the time, money and effort.
We can definitely say that it is, indeed, worth the time, money, and effort. However, there are many mistakes that beginners can make which cost them thousands of dollars down the road.
Last year, we decided to offer a free report giving you the basics of what you need to do about being a landlord, after you purchase investment property in Perth.
In this and the next blog posts, we are going to give you the short version. You are free to download the full report by clicking this link: .
Your Investment Goals
There are many reasons for buying investment property. You can make money in the future as your property appreciates in value. You can use negative gearing to get tax relief. Or, you can do the opposite and create a passive income stream.
While these goals are quite different from each other, they all have one thing in common. To attain them, you have to make sure that it is well-maintained, and that you are able to generate steady cash flow through rental income. However, you must take basic steps to protect your property before you are ready to put it up for rent.
Protecting Your Property
There are many kinds of insurance that you need to protect yourself and your property. Be sure to do your due diligence by gathering information from multiple sources, including your bank. Insurance companies are required to give you a product disclosure statement (PDS) if you ask for one. So, be sure to ask for one.
As it sounds, this covers the “bricks and mortar” on your property. Building insurance usually covers flood, fire, explosion, severe weather, and other events. Caveat emptor: many policies fail to cover your house if it is damaged by your tenants.
Call Denise at 1300 472 427 for more information or post a question below. For more on insurance and other handy tips you need to know, go to part two.
Read an article on: “The Basics You Need to Know About Being a Perth Landlord (Part 1)“