my story

I’ve bought a 2 unit bedder in QLD 6 months ago and originally the property was cashflow positive but 2 months ago, one of the tenant left and since then unable to find another tenant [comp]. So now, the property is negatively geared but 2 weeks ago, I have learnt a HUGE lesson and it is the importance of insurance. When I bought the proeprty 6 months ago, the building report states that there was an old hot water unit in the roof and the builder says it is very common in QLD and it is not leaking and cost $2k to remove it from attic. 2 weeks ago, that same unit fell thru the ceilings onto one of the bedrooms (fortunately, it fell onto the vacant bedroom) and my property manager informed me of the decision and I told her to immediately contact the body corporate and my landlord insurance company to discuss repair bills. Luckily, the existing tenant is very understandable and he is fine with it.

After this incident, I strongly recommend another contemplating of being a landlord to take out insurance to cover contingencies and also to have a competent property manager that will not choke in stressful situation and she has sorted out the entire drama in about 2 working days. She is currently liaising with insurance company to discuss repairs and timeframe.

Somebody may be deterred from this incident to invest further from property but I treat this as a very good lesson to learn and become a more informed property investor and share more stories with my fellow forumates.

Cheers
john

Currently own 1 -ve geared property but wanting to own 10 +ve cashflow properties within 2 years (either locally or overseas) and enjoying the journey along the way.