Im wanting to know what body corporate covers in terms of insurance,
If a tennant were to cause the place to burn down, would I be stuck with the debt??
If a tennant were to cause the place to burn down, would I be stuck with the debt??
what happens if my IP burns down?
- Thread starter want2bewealthy
- Start date
As y-man said, body covers outside and you cover the inside.
W2BW, may I suggest that you're starting to think too much? Get insurance, but don't worry too much about outlier events. Just wait a while and get used to owning an IP. Research more about new buys instead of worrying too much about outlier events.
Alex
W2BW, may I suggest that you're starting to think too much? Get insurance, but don't worry too much about outlier events. Just wait a while and get used to owning an IP. Research more about new buys instead of worrying too much about outlier events.
Alex
At least you would have a nice block of land DA approved for development!
HI there
having lost 2 properties in the Canberra bushfires - I can say that initially you wait for the loss assessor to review the situation - to advise whether there has been adequate insurance. With a house it is with respect to both the building and contents, with a unit - you could be waiting for 2 different insurers, whoever has the body corporate building insurance and whoever you have your contents with. Hopefully it is sufficient to pay out any debts owed!
Insurer's can elect to pay you out or they can state the property should be rebuilt - you may wish to review what the body corporate insurance says.
Once there is a payout - you have disposed of an asset for CGT purposes - you now need to consider if you can benefit from the rollover provisions in the tax legislation. In our case we elected to rebuild one of the properties - and utilise the rollover provisions - as we would have had a greater problem with CGT. The other block of land we sold.
As for a block of land with DA approval - as planning laws change - you would have to see whether the same property could be rebuilt. In our case we had to comply with new energy rating requirements and the same property could not be rebuilt again. It had to be similar in size to avoid any problems with CGT requirements but had to have an entirely different set up otherwise. It is at this stage you normally find out that you are underinsured as complying with new requirements is more costly and you need to take out a loan to accommodate the changes and increased building costs.
The main thing is if something like this happens to you - get informed advice as otherwise you could be paying more to the taxman than you expected.
thanks
having lost 2 properties in the Canberra bushfires - I can say that initially you wait for the loss assessor to review the situation - to advise whether there has been adequate insurance. With a house it is with respect to both the building and contents, with a unit - you could be waiting for 2 different insurers, whoever has the body corporate building insurance and whoever you have your contents with. Hopefully it is sufficient to pay out any debts owed!
Insurer's can elect to pay you out or they can state the property should be rebuilt - you may wish to review what the body corporate insurance says.
Once there is a payout - you have disposed of an asset for CGT purposes - you now need to consider if you can benefit from the rollover provisions in the tax legislation. In our case we elected to rebuild one of the properties - and utilise the rollover provisions - as we would have had a greater problem with CGT. The other block of land we sold.
As for a block of land with DA approval - as planning laws change - you would have to see whether the same property could be rebuilt. In our case we had to comply with new energy rating requirements and the same property could not be rebuilt again. It had to be similar in size to avoid any problems with CGT requirements but had to have an entirely different set up otherwise. It is at this stage you normally find out that you are underinsured as complying with new requirements is more costly and you need to take out a loan to accommodate the changes and increased building costs.
The main thing is if something like this happens to you - get informed advice as otherwise you could be paying more to the taxman than you expected.
thanks
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Sorry for thinking too much but its only the biggest purchase Ive ever made in my entire life and could ruin me if someone decided to smoke in bed 
I just want to protect my livelyhood and dont see it to be a dumb question to ask, although Ive been wrong in the past..
I just want to protect my livelyhood and dont see it to be a dumb question to ask, although Ive been wrong in the past..
Ahh, then you have never been motor racing before. Property purchases are nothing compared to race budgets
Cheers,
The Y-man
Sorry for thinking too much but its only the biggest purchase Ive ever made in my entire life and could ruin me if someone decided to smoke in bed
I just want to protect my livelyhood and dont see it to be a dumb question to ask, although Ive been wrong in the past..
Hopefully in a few years you'll be thinking 'now why was I so worried about such a small amount?' It's not a dumb question, but it's something that should have prompted the thought 'let's check my insurance policy first'. Thinking is great, but thinking in the wrong direction leads only to sleepless nights over something that you're already protected against.
Alex
