Creating a rental portfolio of Surfers Paradise property is a brilliant way of supplementing your income while also helping provide accommodation for the number of people who move to the Gold Coast each and every year. With the rising strength of the Queensland economy, the upcoming 2018 Commonwealth Games being hosted in the region and a huge number of infrastructure developments set to occur in the region, now could be a brilliant time to take the plunge and purchase some investment real estate.
Of course, just making a move into the property market isn't enough – it's simply the first step. After you become the proud owner of real estate in Surfers Paradise, there's still the need to earn a profit from your portfolio. Luckily, the recent RP Data Quarterly Rental review for September 2014 highlighted the growth of rental yields for the Southeast Outer Brisbane region, with the median rent for houses increasing by 2.3 per cent over the last year. Units also saw median rents grow over the last 12 months, increasing by 2.6 per cent.
With an investment market this ripe, finding and securing tenants is the name of the game. As a landlord, looking after your properties should be a main concern. After all, as your biggest assets, it can be problematic if they're unable to provide you with a steady rental income. There are a number of ways to protect yourself from this trouble, with a major one being landlord's insurance.
As the name suggests, landlord's insurance is a financial cover for your property portfolio, just like you have for your home, contents, vehicle and health. In the event that an unforeseeable tragedy befalls you and your real estate, having a decent insurance policy can help alleviate the stress and mitigate any financial burdens that can occur as a result of these damages.
There are a wide range of different policies and providers, each with their own benefits and drawbacks. However, there are some common trends that most insurance policies will cover. For example, natural disasters are often well covered, including things like fires, stormy weather, hurricanes, tsunamis, earthquakes and other Acts of God that cannot be foreseen nor adequately prepared for.
Massive damages caused by these events can leave a home uninhabitable due to the damages done, which means the property won't be earning any profit for the landlord. However, having a well-prepared landlord's insurance policy will help out with the costs of repair – allowing you to get the home back on the market and occupied as soon as possible.
Furthermore, another common aspect of a landlord's insurance policy is for income lost due to unreliable tenants. Say, for example, some tenants leave your property without giving you the appropriate amount of warning. This leaves you without income for a number of weeks while you clean the home and prepare it for the market – perhaps longer if repairs are needed throughout the property.
However, some insurance policies will provide landlords with some compensation for their lost income, which helps to reduce the sting of having their home abandoned by tenants and potentially mitigate any huge financial losses in the future. Keeping your investments as strong and healthy as possible with positive cash flow is the backbone of a successful portfolio.
These are just some of the benefits of landlord's insurance for future investors. Get get in touch with a local insurance provider today to begin discussing the different insurance policies available and start working towards creating a suitable policy for your investment insurance needs today.