All things considered, property investments are by far one of the most popular investment strategies in the US. Indeed, many first-time investors mention that it’s the physicality of the property that attracted them in the first place. Contrary to cryptocurrency or even stock exchanges, you don’t need to become a qualified pro to make the most out of your money. Real estate might lose some of its value, but because a tangible asset, it can be mostly managed through common sense and practical decisions.
More often than not, the property value increase over time – something that you might have noticed if you’ve been monitoring the market to buy a home; house prices tend to get up and not down. Nevertheless, should prices go down, it’s highly unlikely you will experience a complete loss on your investment. With any other investment strategy, you could lose all your capital. However, it’s fair to say that while the real estate market offers a safe investing solution, it doesn’t mean that your property is guaranteed protection at all times. On the contrary, if you want to make the most of your real estate investment – as a primary home or a rental – you need to consider your property protection strategy carefully.
If you believe that your property is above the suspicious fluctuations of the market exchanges or the risky cyber attacks of a cryptocurrency investment, you are right. But don’t let this fool you into believing your home is safe. The truth is that real estate losses continue to happen every day to careless investors who forget about property investment protection. Don’t make the same costly mistake.
The foundations can move
Picture the scene.
You bought a lovely house a little out of town. The area used to be old farmland, and since the last generation of farmers died, the old barn has been renovated and turned into an impressive 5-bedroom house with a garden and a patio looking into the bay. It’s beautiful. You fell into love at first sight. There was absolutely nothing wrong with the old barn as it’s been renovated with taste – and you brought your own style as you first moved in. There’s only one detail you forgot to check, and that was the ground.
Indeed, the extension has been built directly onto an area that used to be a field in the past. The soil is fertile and productive. It’s ideal if you were to grow your vegetables. But as a ground for your house foundation, it isn’t sturdy enough. Therefore, when you experience heavy rains, it can feel as if the foundations were moving. Are there? The answer, as terrifying as it sounds, is yes. When the soil lacks solidity, your foundations can move sideways, or even sink. You need to add support to the structure – micropile contractors can help you to provide durable solutions to stabilizing the terrain. After all, you don’t want your dream home to run away under your very feet!
You might be somehow incapacitated
Most property investors plan ahead. They consider the market evolution and the planning construction in their area before they commit to purchase a property. Common sense shows that you can often estimate the value of your property in the future based on how the community and the market behave. However, more often than not, the carefully planned strategy misses the input of an estate planning lawyer. An estate planning lawyer is your legal representative who manages your affair. You need to protect yourself in the distant future to understand their role. Should you be in a position where your mental health deteriorates, the estate planning lawyer will ensure that all taxable operations and other complex issues can be managed professionally and by experts.
A home with a history is a money pitfall
Houses are said to increase in value over time – assuming you stick dutifully to the maintenance schedule. But the charm of old homes can come at a hefty cost. Indeed, the atmospheric Edwardian villa has had many homeowners before it finally crossed your path, and with them, it has developed a long list of weird, unexpected and potentially life-threatening issues. Your first home shouldn’t be a historic property because you’re likely to struggle to make it work. Indeed, you need to know exactly what you’re buying when you make an offer, which means that you should inspect the property with a team of specialists. You need a budget with plenty of wiggle room; there is also something lurking behind walls and floors so you never what a little renovation might lead to.
Inexperienced landlords waste money
Are you ready to buy a property as a landlord? Renting an apartment can feel like the perfect strategy to build your investment portfolio without needing a lot of capital. Indeed, you can use your rental income to finance the property. It’s a common strategy for first-time landlords. However, it’s a strategy that can come back to bite you in the butt if you’re not careful about your property protection approach. Did you know that more than half of Millennials who are landlords choose to ignore renters insurance? You might think you’re saving costs, but in reality, you end up putting your property and belongings at risks. If you’re renting out a furnished or semi-furnished property, don’t skip the insurance cover!
Get the right insurance cover or lose it all
Talking about insurance cover, do you really understand what your property is protected against? Let’s spell it out clearly: Your home insurance will cover the damages from a volcano eruption. But it doesn’t provide replacement money or compensation for flooding or earthquake damages. If you don’t want to lose everything you own, you might want to spend some time options insurance options and specialist coverage.
What about income protection?
Last, but not least, your income is that the heart of your property management strategy. You pay for improvement works, renovations, decoration, maintenance, etc. What happens when you find yourself in a situation where you lose your income? For freelancers, highly-paid professionals and entrepreneurs, nothing can replace the security you get from an income protection policy. You can’t stop an accident from breaking your bones, but it doesn’t have to break your home.
In conclusion, if you’re looking into property investments, do make sure to consider options to protect your home and your rentals.