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Sorry, tenant pays usage of water hence in NSW I call it water rates, owner pays council rates.
Not so bad, the tenant pays the water rates!
You just need to invest in a high growth area with great rental return!
Hi Joseph,
Not a silly question, a property is positively geared when all expenses of the property are covered by the rental income. Rates and land tax are an expense of the property and therefore a tax deduction which if the rent does not cover then puts you into negative gearing as you have to add money to the investment to keep it active.
Ideal positive gearing is when all the expenses are covered, loan repayment, rates, taxes etc and you also get extra income for yourself!Cheers, Future Wealth
Hi there Lila77,
The landlord suggestions above have been popular with my past clients and investors as well.
You need to check that the policy covers rent arrears, damage and third party damage meaning something a guest of the tenant may do.
Check what the excess is on a claim as some divide up the claims into parts and charge excess on each individual thing, eg. painting, carpet replacement, electrical damage. These may each hold and excess as they are treated as seperate claims even though they all happened with the one tenancy. This can prove a little pricy and you can be a bit out of pocket. You need one excess per tenancy so that all damages and rent arrears are covered with one excess.
If you ask questions you may find one of the above insurance providers is what you are looking for…..!Enjoy, Future Wealth
Hi David,
I have lived in the Hunter Valley for the last 25 years working in both Singleton and Muswellbrook. I have a Real Estate background and both areas are great investment opportunities.
The mines are going ahead with new leases and major employment. Mt Arthur in Muswellbrook has minining leases for the next 20 years plus and Ashton Coal have approvals. Its going off!
Any investment is going to work but look out for the furnished properties, there are pitfalls. Mining companys only put their guys in new houses with nice furnishings. You also have to consider the vacancy factor with furnished as they are usually shorter leases and a lot of turnover. Maintaining the furnishings, eg. fridge, washer, drier, vacuum etc. can be costly as well.
It depends what you want really, tax advantages etc. New property can be better for that than older renovated property. Bad areas are in all towns and you wont get the reliable class of tenant you require for a money making venture, it may end up costing you without the right insight.
Take time to think about these things and invest wisely.
Cheers, Future Wealth
