The 2 biggest mistakes in Property Investment.
There are 2 big mistakes we see people make when they become property investors.
The good news is…
They are easy mistakes to avoid, so we want to help you avoid them.
Mistake Number 1
Not having a buffer in your mortgage account.
If there’s one thing that the lockdowns have taught us, it’s the value of having a little buffer of $$$ in your mortgage account in case your tenant can’t pay their rent during a situation like this one.
Now, if you haven’t purchased an investment property yet, speak with your accountant and your mortgage broker about keeping a little extra $$$ in your mortgage account, so that you have that buffer “just in case”.
But if you have already purchased an investment property, and you don’t have a buffer in your account yet, it’s not too late for you!
Speak with your financial advisor about creating a plan for building up that financial buffer over the next few months and years.
Mistake Number 2
Not taking comprehensive landlord insurance.
Owning an investment property carries risk.
And so for that reason, you’ll always take building (and probably contents) insurance for your investment property.
But if you have tenants renting your property, you’ll want to take out comprehensive landlord insurance too. So speak with your property manager and find some good options for landlord insurance so that your property (and rent payments) are adequately protected.
Now, even if you already have an investment property, but you don’t have landlord insurance yet, give us a shout and we can help you with a few landlord insurance options.
Send us a DM if you need some websites to check out for landlord insurance.