There are a number of things you can do to limit your risk when purchasing a property. To begin with you should always obtain legal advice on your purchase. This will ensure you are fully aware of all your legal obligations and nothing is left to chance
You should also seek advice in respect to ownership, that is who will retain ownership of the property, you, your partner or a business. Ownership will have tax implications for whoever is listed as the owner. Your accountant is the ideal professional who can advise on the best structure to minimize risk.
Did you know you can insure against loss of rental income? Yes that’s right, there are a number of insurance products available that will cover you against damage to the property, liability in case of injury, loss of rental income and of course fire or theft. These products give you peace of mind in knowing that you are protected in any unforeseen circumstance and the great benefit is that they are all tax deductible.
You can also reduce the risk by ensuring you have a licensed property manager managing the rental of your property. For a small fee that is also tax deductible you can ensure that every tenant is screened satisfactorily and your property is inspected on a regular basis.
Property 10 provides all the above professional services and we are happy to discuss any of the above options with you in person.