Hi, everyone
Finally I have been sucessful in buying my first IP!! yah (already have a PPOR) I just wanted to see if anyone had some advice on the following few things before settlement in Feb 08. Any help would be great.
Situation: Just purcahsed a 2 bedroom unit in eastern Melbourne paid $ 275,000. Unit is about 30 years old and bascially in original condition inside (has been rewired, new oven). In excellent structual condition. Settlement is start of Feb 2008. I plan to lease this unit just after settlement as an investmant property.
1. When should I look at getting Landlord insurance? I got a qucik quote from AAMI which was a strata title and tenent cover policy that was quoted at $160 per year ($600 excess) with $10,000 contents cover. Does this seem about right, seemed quite cheap? is $ 10,000 enough for contents as building is covered by body corp. Is there anything I should look out for or be aware of?
2. The unit is about 30 years old with basic upgrades (wiring, ovan, carpet is about 5-6 years old) is it worth getting a depreiaction schedule considering the builing is quite old and has no really new upgrades?
3. How should I go about finding a leasing agent? should I get a few quotes from the local real estate agents, is there any advice on picking one, or are they all basically the same. What is a reasonable price? e.g 5 or 6% plus one week rent and advert fees? Can I get all this organised before settlement so I can hit the ground running?
4. I was given some advice that I should not claim the tax variation each pay week from the IP (if I could manage) and wait till tax time to claim the bigger return to use on my PPOR loan as this is non-deducatable? what are feeling on this concept if I could manage without the tax relief each pay week?
5. Between now and settlement (or just after) is there anything I have forgotten or should be aware of?
I know I have asked many long questions and have a fair idea about each, but I would really appreciate some feedback or experiances on any of the following or anything I might have missed.
Thanks guys,
Hello,
$160 does seem cheap for landlords insurance you should really check the policy to see what it covers. The policy that my company provides to landlords (depending on your state) starts at $255 and ends at $325. All the companies who specialise in landlords insurance are around these sorts of figures depending on your state.
You really need to have the policy for when the tenants move into the property.If you need any more help let me know.
Thanks Ben, I will look into it further
Congratulations!
1. It doesn't take long to arrange LL insurance, so you should make some calls now. I've had a contract where I needed to insure from the date of contract, which I think is a bit unusual. Worth checking though. Hey Ben, does your company do discounts for multiple properties? I'm not having much joy in that department…
2. Nothing to contribute here.
3. In metro Melbourne you should be able to talk to a mix of REAs and professional property managers. Ring around a number. Start with the ones you think you're least likely to go with so that you learn your good questions by the time you talk to the more likely ones.4.That's a new one to me. My view is that if you can get the government to give you your money NOW, then you should. Why wait? You can still use it to pay off your PPOR, it's just cash. So long as you have the discipline to actually put that money into your PPOR…
5. Probably, I usually manage to forget something
Daedalus.
Guess whos not a virgin investor anymore eh?
You MUST get your insurance done form the time your contract is accepted. It is your liability from that time on – well before settlement. While technically it is not yours yet, it will be, and who wants to risk buying an uninsured property that burns down or is trashed the day before you take ownership. AAMI are pretty good value that's for sure.You will need building, contents, and landlord insurance in the one policy.
All the best with your journey…Thanks
Just quickly,
1. when you purchase you need the building insurance correct
2. I would recommend that you look into a specific LL policy only form the point view that the combined ones are in some cases very limited compared to the full on LL policies available on the market.As to the question above from Daedalus about discount for multiple properties unfortunately no we do not.
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