If you’re looking to buy a home or investment property, it’s important to consider how you will protect it. Here are our top property protection tips.
Tip 1: Find the right loan for your needs
Both home and investment property loans are long-term financial commitments. You need to find the right loan for your specific needs. This means sourcing an affordable loan with all the features you need at a low comparison rate.
Tip 2: Take out appropriate home and contents insurance
Both homes and investment properties are valuable assets. It’s crucial to take out appropriate home and contents insurance for your property. This protects you financially by insuring the current value of your property against damage due to fire, storms, floods or tenant damage, as well as to protect your property contents against theft.
Tip 3: Physically protect your home
You should take physical steps to protect your home beyond getting home and contents insurance. Examples include getting:
- security screens
- double locks on doors and windows
- a home security system.
Doing these things can also help you to get a cheaper home and contents insurance premium.
Tip 4: Take out income protection insurance
This insurance provides you with income to help you pay for your home or investment property loan if you’re unable to work due to an injury or illness. You should check if you have this cover in your superannuation. If you don’t, you should consider taking it out before you sign up for a home or investment property loan.
Tip 5: Take out life insurance
Life insurance will provide your family with financial protection if you die. It’s important to financially provide for your partner and children if this happens, otherwise they may be forced to sell your property.
Again, you may have a level of life insurance cover as part of your super. If you do, you should check to make sure you’re insured for an amount that will cover all your debts and provide for your family.
If you don’t have any life insurance cover, you should get an appropriate amount to give you peace of mind.
Tip 6: Try and get ahead with your loan repayments
A less obvious way of protecting your home or investment property asset is to get ahead with your loan repayments. This will give you a financial buffer if any unexpected events arise. It will also help you to own your asset sooner.
You can get ahead with your loan repayments by doing simple things like:
- arranging to make your repayments fortnightly instead of monthly
- depositing any lump sum payments you receive (like a tax refund) into your home or investment property loan.
Our experienced and licensed brokers at Wisebuy Investment Group can help you to find the right home or investment property loan for your needs. We can also help you with your loan application.
We service a diverse range of clients in Newcastle, Lake Macquarie and Maitland, and we work with more than 60 lenders in the Australian market.
Contact us today for an obligation-free chat. We’d be happy to answer any questions you have.