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Under their landlord policy NRMA have certain amount of cover for building damage cause by the tenant. If the same tenant default on rent and damage the building at the same time. The claim is count as one which only access fee applied.
One of my investment property used to cover under NRMA landlord insurance. The tenant who live there had defaulted on rent about 12 weeks. I made a claim after evicting the tenant. It pretty quick, fully paid, no drama.
The only problem with its policy is I have to make a seperate claim if I want them to pay for building damage caused by the tenant. Since I have 2 policies ( building and landlord) with the same insurer NRMA. A separate claim mean an extra access fees.
The lesson that I ‘Ve learnt is never get both building and lanlord policies from the same insurer. $100 cheaper for combining premium is not worth it at the end.
You can put a special condition in the contract for the tenant prior to leasing the property. The condition should state that the tenant aware of the GF construction. They need to allow people to have access and carry the work. You can put a temporary electrical meter and pay on amount used and share the service charge. Water usage can be share with the tenant say you pay 20% for example. Make sure all your tradesman not doing their work on Sunday and starting after 9am weekday. All need to list in the contract. Base on my experience if they agreed to rent your place they would not be unhappy during the construction. We 've build a GF on one of our IP while we are renting out the front house. We did not have any problem with the tenant.
Hi Christine
I already have available finance in place. I have $340k available as LOC (equity draw out of PPOR) and $320k cash sitting in my offset account ( as My PPOR paid off this account is offset to #1 IP). I am planning to buy 2 $500k properties and use $340k to fund 20% purchase. The $320k will be use to renovate or add value to both property to make them positive gear or natural gear. I do not have any problem to service the loan all properties are positive gear. I already get pre approval from NAB. Just the matter of finding the right property. I will be fine.
Lsreng
Hi Christine
Thanks for sharing yours. My goal for 2014 are:
1. Depend on the property market. If the market is good I am planing to buy #4 and #5 IP.
2. Research and improve knowledge on commodity investing. Probably invest some money in this asset class.
3. Increase my offset account to $400K.
4. Learning on commercial property investing.
Depend on the circumstance. These goal could be achievable (at the moment). I determine to try my best to achieve it.
Lsreng
