Landlord’s Insurance

Insurance covers major risks to give Landlord’s peace of mind and financial protection. But in order to have both of that, you must ensure that the insurance you get is appropriate to meet your needs as a “Landlord”. Luckily, there is a specific insurance for this – Landlord’s Insurance! The sad thing however is that many Landlords are not aware of this and how cost effective it is. In effect, they always carry that unnecessary risk. So what is Landlord’s Insurance?

Landlord's insurance is a very comprehensive insurance that protects property owners from financial losses and liability that can be created from their rented properties.

How does it differ from other standard insurance? Here is the comprehensive COVERAGE you get and the BENEFITS that goes along with it:

Coverage	What it Covers
Landlord’s Building	LIMIT: Up to the selected sum insured.Covers landlord’s building, fixtures and contents including outbuildings, walls, gates, fences, jetties, swimming pools against accidental damage or loss.
Damage by tenant	LIMIT: Up to building sum insured selected.Covers deliberate, malicious and intentional damage by a Tenant.
Rent Default	LIMIT: Up to 18 weeks loss of rent.If a tenant vacates the premises without notice, defaults in payingrent, is legally evicted from the rental property or upon the death of a sole tenant.
Loss of Rent	LIMIT: Up to 52 weeks loss of rent.Cover is provided if your property is uninhabitable due to an insured event.
Public Liability	LIMIT: $20 Million.Covers legal liability for bodily injury and third party property damage.
Landlord’s Legal Expenses	LIMIT: $7,500 With insurer’s consent cover is provided for legal expenses to pursue the rent default of the tenant.

Benefits for Building Insurance (LBI) Landlord’s Contents (including fixtures and fittings) Up to 10% of the building sum insured Removal of Debris Up to 10% of the building sum insured Professional Fees Up to 10% of the building sum insured Authority Fees Up to 10% of the building sum insured Fumigation Costs - following the death of a person Up to $5,000 Exploratory Costs Up to $2,500 Fusion of Motors (less than 4hp) Up to $2,500 Removal of Fallen Trees Up to $2,000 Landscaping Costs Up to $2,000 Replacement of Locks and Keys - following theft Up to $1,000

Benefits for Protection Insurance (LPI) Deliberate, malicious and intentional damage to the building by the tenant Up to $50,000 Theft by Tenant Up to $50,000 Removal of Debris Up to 10% of the building sum insured Fumigation Costs - following the death of a person Up to $5,000 Fusion of Motors (less than 4hp) Up to $2,500

To better understand how this works, here are sample cases where the insurance are applied:

Case # 1 

Let’s say your property building is insured for $350,000.  During the rental, a fire destroys the building and contents. What will be covered by your insurance?

Possible Coverage and Benefits
Coverage (Landlord’s Building)	Up to $350,000
Benefits (Landlord’s Contents)	Up to $35,000
Benefits (Removal of Debris)	Up to $35,000
Benefits (Professional Fees)	Up to $35,000
Total Claimable Amount	$455,000

CLAIMABLE AMOUNT GIVES YOU A BRAND NEW HOME! 

Case # 2

Now your property is insured for $300,000 and the tenant pays $350 weekly rent. Suddenly, your tenant vacates without notice,still owes you 12 weeks rent and has damage done of the walls in your home. It may take you 10 weeks to repair the property and to secure a suitable replacement tenant. What will be covered by your insurance?

Possible Coverage and Benefits
Coverage (Loss of Rent)	$350 x 10 weeks = $3500
Coverage (Damage by Tenant)	Up to $30,000
Benefits (Professional Fees)	Up to $35,000
Total Claimable Amount	$68,500

THAT’S 10 WEEKS OF LOST CASH FLOW RESTORED!

Premium

So how much premiums are you required to pay to claim these huge amounts?

Take advantage now of these VERY LOW premiums to get the most comprehensive and complete insurance package for your investments:

State	Sub-State	Sum Insured	LBI Premium	LPI Premium
NSW	NSW	$250,000	$915	$340
		$300,000	$1,045
		$350,000	$1,175
	ACT	$250,000	$735	$300
		$300,000	$855
		$350,000	$970

State	Sub-State	Sum Insured	LBI Premium	LPI Premium
QLD	QLD	$250,000	$765	$285
		$300,000	$885
		$350,000	$1005
	NT	$250,000	$775	$335
		$300,000	$885
		$350,000	$1005

State	Sub-State	Sum Insured	LBI Premium	LPI Premium
VIC	VIC Metro	$250,000	$630	$275
		$300,000	$730
		$350,000	$830
	SA	$250,000	$720	$275
		$300,000	$830
		$350,000	$940
	WA	$250,000	$680	$285
		$300,000	$780
		$350,000	$880
	TAS	$250,000	$710	$275
		$300,000	$820
		$350,000	$930

Anything can happen anytime. Landlord’s insurance provides protection to investors, financial support and peace of mind so you can focus on enjoying life with family and friends. Because you can’t and shouldn't waste your time and money on these potential losses! Well hopefully nothing happens but it is better to be prepared.

So stop hoping and GET COVERED now!

ACT NOW –-- SIGN-UP for FREE!

Dual Occupancy Homes

"DUAL OCCUPANCY" HOMES. A NEW TREND IN HOUSING INDUSTRY!

Dual Occupancy Homes are the new trend within the property industry and very popular with owner-occupiers and investors.


An astonishingly fast growing and aging baby boomers population, the high cost of today’s living, an under-supply of housing, slow land release and government procedures are the major driving forces towards this resourceful property option.

A property can be labelled “dual occupancy” when the same block of land is in use by both dwellings, which are attached and under one title, whilst both dwellings maintain separate water, electricity meter and have a proper building structure of a fire wall. Both dwellings share the same roof but each one has their own entrances, kitchens, bathrooms, garage and entertainment areas inside and out.

“Dual Occupancy” homes have the capacity to

•  Generate income to the owner-occupier by living in one and renting the other.
• Accommodate the needs of a growing family in the form of a teenager retreat or a granny flat.
• Provide a dual income for the investors since they can rent each one individually and minimise their tax exposure with depreciation for both of the dwellings.
• Increase demand and popularity due to their versatile nature.
• Create a positive cash-flow
• Offer new investors a relatively low risk investment and development opportunity entry .

Click this link to get more information
Property Of The Week

Brassall - Property of the week

PRIME

LOCATION

Brassall is without question one of the fastest growing regions in Ipswich and is considered and area of affluence within the Ipswich precinct. Pine Mountain is an impressive new boutique community on offer by QPG, nestled within the thriving region of Brassall. This exciting new development comprises of 150 lots, ranging from 400m2 - 960m2 and being completed over 6 stages.

Brassall presents good value in a high-growth location, the ideal place to build your dream or to capitalise on your positively geared investment, with annual capital growth in the area 9.80%.

Pine Mountain offers convenience, good schooling options and an excellent community lifestyle. Ideally located 5 minutes from Ipswich CBD and 40 minutes to Brisbane CBD and with easy access to the Warrego Highway and a large variety of public transport, getting around is made easy.

Here you will enjoy the convenience of the Brassall Shopping Centre which offers you all you will need in terms of food, fashion, dining, medical, health & beauty, homewares and financial. The Brassall community presents a range of recreation areas and parks, in addition Ipswich State High School is only minutes away, making it great for young families.

At QPG we offer an array of affordable House and Land Packages, with a large selection of new home options to suit all tastes and budgets. Choose from a large variety of house designs, from a range of builders to include modern elevations and spacious floor plans.

Click here for more details

Tax Depreciation Schedules

When it comes to depreciation on a home there are two types of allowances available: depreciation on Plant and Equipment, and depreciation on Building Allowance. Plant and Equipment refers to items within the building like ovens, dishwashers, carpet & blinds etc. Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. Both these costs can be offset against your assessable income.
So why should I consider depreciation when purchasing an investment?

Simple, the higher amount of depreciation you have to offset you taxable income the lower your tax payable and the more tax return you will receive. The amount the depreciation schedule says you can claim effectively reduces your taxable income because it’s taking into account how much it costs you to own and maintain the property.

If you would like to find out more about tax depreciation please get in contact with us.

Pay Off Your Home Loan Sooner

Paying off your home loan sooner not only reduces your mortgage term but can significantly save you a lot of money on interest. This doesn't have to become a huge drain on your cash flow small repayments as well as a clever set up can make a huge difference.

1. Review your loan – Depending on the economic trend and where we sit on the property cycle banks are ever competing to hold the lowest rates. Have a mortgage broker review your loan every 12 months or so to make sure you’re not missing out.
2. Have an offset account – An offset account acts much like a transactional account which is linked to your mortgage and when you deposit extra fund into the account it will decrease the loan balance. This in turn reduces the balance interest is calculated on, saving you interest.
3. Repayment frequency - For example, some home loan fortnightly repayments are decided by dividing the monthly repayment in half and then repaying every two weeks. By doing this, you end up paying the equivalent of one extra monthly repayment each year.

If you would like to find out more please get in contact with us.

Property Cycle

A Property cycle can be seen as a logical sequence of recurrent events reflected in demographic, economic and emotional factors that affect the supply and demand for property subsequently influencing the property market.

The property cycle generally recognises 4 recurring phases the Boom, Contraction, slump and recovery.

Boom

• Rents rise to levels which place significant financial pressure on
  
  tenants
• The time it take for a property to sell after being listed for sale reduces
  
  markedly
•  Property prices rise
• Yields fall as prices rise proportionally more than rents rise
• There are few mortgagee/forced sales
• Property finance is easy to obtain and finance companies release a number
  
  of new lending products making borrowing easier
• People borrow against their increased house values and spend this money on
  
  consumer items (Tv’s, Boats, Holidays etc)
• Increase number of property seminars competing for investor dollars
• Property is a hot topic in the media. Initially there is much speculation about how price growth will continue, but later in the Boom the media turns its attention to the reduced affordability of property
• There is a lot of discussion about how this boom will never end i.e “its different this time”  and expectations that there will be no slump phase

Contraction

The Contraction phase typically start a long time before most people realise the property market is in the slump phase, this is because of the delay between the shifting trends of “key drivers” and the impacts that are evident in the property market itself. An interesting note is that contrast to popular belief property values
do not necessarily fall during a slump, values may simply stall for a lengthy period.

• Yeilds fall further
• Increased vacancies of rental properties
• Interest rates begin to rise
• Oversupply in the market
• Demand reduces

Slump

• Reduced cash flow for investors (Although not always)
• Property price growth stagnates and/or property values falls
• The length of time to sell a property increases markedly
• Increase number of mortgagee/forced sales
• Property finance is more difficult to obtain
• There is much “doom and gloom” about property values being too high in the
  
  media
• Many property investors experience lower cash flow and sell down their property portfolios to some degree, or completely

Recovery

• Increased rents and cashflows
• The length of time to sell a property reduces
• Property prices begin to increase
• Much confusion in the medis reigns about whether recent property value growth is sustainable
• Many protential property purchasers delay buying because they evidenced value falls or a slow market in the proceeding slump

The Property clock below depicts the different stimulus or “Key Drivers” effecting the market. As you can see the green represents when finance is easy to obtain and red is when it becomes more difficult due to harsher lending policies and difficult valuations.



Find out more about property cycle here http://australianpropertyagency.com.au/nras

NRAS, What's that?

The National Rental Affordability Scheme (NRAS)

NRAS Is a Federal Government initiative to encourage the construction of new affordable housing in Australia. The scheme provides Federal, State and Territory Government incentives of $10,350 per annum for ten years to an investor.


The Commonwealth Government incentives is made up of a refundable tax offset of $7,486 p.a. This means it will reduce the amount of tax paid in any year and the Government Incentives are indexed annually and available for a period of ten years for each approved NRAS Property.


The State Government incentives are non-assessable, non-exempt income of $2,587. This means that the amount is not included in your income (no tax payable).


NRAS properties are for sale across a number of states, in prime real estate locations and growth corridors to provide for those who need affordable housing in the growing rental market.

For more information, visit us at www.australianpropertyagency.com.au/nr as/