Builder’s Warranty: Your property’s safety net.

When you buy a new property, you get a 6- to 12-month builders warranty in most states. One of the first things you should do is instruct your new tenants to tell you every last thing that is wrong with your property. Most tenants would likely be shocked to hear their landlord actually encourage them to do that.

When you’re adding that property to your portfolio, you want to have the most enthusiastic people in the world looking out for you to ensure everything is right with your new property. Those people are the ones who are actually living in the house. When your tenant sends you a list of everything that is wrong with the property, you can simply forward that to your builder and they are obligated by law to fix everything. This is covered under what we call the builder’s warranty.

Invest smart, stay protected. Structural guarantee assurance.
The structural guarantee is exactly what it sounds like – structural things only. If there’s a crack in the wall or a crack in the slab, the builder must come back and fix it. For example, in the state of Queensland, the structural guarantee at the time of writing has to be offered for six years and three months from the date of the practical completion invoice being issued.

The rules vary from state to state and for different builders as well. Continuing with the example of Queensland, every builder is required to take out an insurance policy with the State Building Authority. If there is a problem with your property down the line, you can make a claim on the structural guarantee. If the builder has gone out of business, you can take your claim to the State Building Authority, claim against the insurance policy and they will assign another builder to honour that guarantee.

Structural guarantees are a very important risk management strategy when you are acquiring properties since buying a lemon is one of the greatest risks you can have when building your property portfolio.

Master your next move ♟️ Know your acquisition costs!💰
Are you ready to embark on an exhilarating journey into the heart of property investment? Buckle up, because over the next few days, we’re diving deep into the world of acquisition costs! Picture this: Your dream property is within reach, but do you know the true upfront investment required to make it yours? From the deposit (typically 10% or 20%), the stamp duty, solicitors fees and bank fees. Your solicitor should prepare a settlement statement detailing these costs for you. You should also plan a ‘construction buffer’ when building.

But fear not! Our mission is to guide you through the maze and empower you with the knowledge to conquer acquisition costs like a pro!

Get ready to uncover the secrets behind:

• House and Land Packages 🏡
• Stamp Duty 💼
• Lender’s Mortgage Insurance (LMI) 🛡️
• Legal and Bank Fees ⚖️💰
• Construction Buffer and Costs 🚧
• Building and Pest Inspections 🐜🔍
• Costs to Advertise Your Rental 📢
• Depreciation Schedule 💼💰

Understanding these costs is your golden ticket to mastering your next move in the property game!

So, join me next as we kick off with an exhilarating discussion on house and land packages costs. You won’t want to miss it!

~Daimien Patterson
Join Now Join Our Weekly Webinar
Get the Book here