The current environment is highlighting the importance of investment property sustainability and long-term protection. The market can be unpredictable, and it’s important to protect your portfolio against any risk.
Here are some of the essentials to helping you protect your investment property portfolio and how to make it sustainable over the long-term.
Diversifying your property portfolio will help manage risk. A diversified property portfolio contains a mix of property types and locations, to limit overexposure to any single asset. By diversifying, you minimise the impact of negative market changes while increasing your chances of growth.
You can diversify by holding different types of properties such as houses, units and townhouses, or across residential and commercial sectors. You can also diversify by holding properties in different locations.
A strong and confident property manager is essential for having a stress-free experience when owning an investment property. It’s important to have a property manager that you trust and who is a good fit for your investment strategy.
A property manager does a lot of the hard work for you when it comes to managing tenants and other operations of the property. In most instances, they look after the end-to-end process of leasing a property from advertising, inspections to end-of-lease arrangements and if necessary, tenant disputes.
According to the Insurance Council of Australia, approximately 83 per cent of Australian homeowners are under-insured. This means that their property doesn’t have the adequate insurance to cover the structure and contents. When a property is under-insured, it can potentially cost you thousands in the event of a fire or disaster.
Making an insurance claim is stressful, and the last thing you want to do is have to spend more than your annual premium. Therefore, it’s important to make sure you have adequate and effective coverage.
One way to ensure you have the most effective insurance coverage possible is by contacting BMT Insurance. With a wealth of experience, BMT Insurance works closely with their construction cost experts to accurately calculate the replacement cost of your property. This information is essential to ensure you have the most accurate and effective insurance coverage.
One of the biggest perks of investing in property is the increased tax deductions readily available. Deductions reduce your taxable income, meaning you pay less tax.
Many deductions are available, from interest repayments and insurances, to water charges and council rates. Property depreciation is also an available deduction for investors. Given that depreciation is a natural process, you don’t need to spend any money to claim it.
IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.
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