INSURANCE is very important in INVESTMENT properties
Why do we invest in properties?
For our future retirement, for our spouse, for our children's future.
I have had friends who invest in properties and was doing great until life suddenly stops for them. Their families suddenly had a mountain of debts and put into position of having to force sale the properties because they cannot repay the monthly instalments with the absent of the paymaster.
It is easy to invest when you qualify for a bank loan. The bank loan to you because you are able to repay the loan because you are 'working' to pay the loan back.
Do you know what loans are to your spouse, children?
Loans = DEBTS to be repaid.
If something happens to you, that wonderful investment properties becomes DEBTS to be paid by your spouse, your children and because they are NOT making money, because you were the sole provider in financial needs to the family, they have suddenly inherited BIG DEBTS.
What we need to realise is to make sure we PASS ON ASSETS to our love sones and not debts to our spouse and children or even our parents if the unthinkable happens.
HOW do we pass on assets instead of debt is simply by having INSURANCE.
When we are investing, we need to make sure you have insurance.
A few friends who invested bought LIFE insurance for the amount of LOAN outstanding in case of their death, those who did that, their family is living well because they have inherited ASSETS instead of debts.
When you invest or thinking of investing in property.
Make sure you also cover your debts (the loan amount) with life insurance so that they debt becomes an assets for the ones you love.
Licence Real Estate Agent (LREA)
Licence Real Estate Agent in NSW.