Hi Guys,
I'm about to take the leap and purchase my first IP.
I have a DFT set up, with a corporate trustee and will be loaning the trust money from personal savings / redrawing to fund the deposit on an interest only loan, with a view to getting the property to CF+ within 12 months.
The biggest question I have at the moment is with regards to insurance?
I've read here about Strata Insurance, LL Insurance, contents insurance…
Which ones do I need? and what are they likely to cost?
Cheers!
Hi Imulgi
Wont confuse you even further with life, TPI / Trauma / Keyman and a few other insurances.
If you purchase a freehold IP then probably all you will need is Landlord's insurance.
If the property is a Strata Title property i.e a unit in the block then the BC will insure the building however some lenders do require you take out an individial ST policy.
Cost will vary from company to company but most of the ones we use you are looking at around $250-$300 for a pretty comprehensive policy.
On the loan front most of the lenders will not offer you appropriate discounts using a Corporate Trustee but there are still a few out there so make sure you Mortgage Broker is experienced in Trust structures.
Richard Taylor | Australia's leading private lender
Thanks Richard,
Appreciate that.
Life / TPD / Income protection insurances are definitely on the cards already, so that wouldn't have complicated things too much
As for the discounts, will definitely shop around for a decent broker – thanks for the tip.
Thanks again.
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