Protecting your assets

For most people investment properties are their biggest and most valuable assets. These properties are also their keys to financial emancipation and security. However, many investors fail to adequately look after their investments. Thereby putting not just their future but everything they own at risk. It is well worth taking a closer look at how well you are protecting your assets. It is also important to evaluate how well your portfolio will stand up to any potential threats. Therefore eliminating the risk of losing everything.

Asset protection

To start with the unexpected can always happen and things can go horribly wrong. Therefore it is important for investors to consider asset protection from the onset. However, the majority of investors do not fully understand the topic of asset protection. While most appreciate the principle of asset protection, only a few acquire the right insurance. Furthermore, even fewer fully receive all the benefits associated with their insurance cover.

Protection is diverse and can range from the type of property, as well at the structure in which to purchase the investment. Furthermore, other important considerations include whose name to buy in and the specific type of insurance required. The practice of skimming through an insurance policy is not particularly advisable. This exposes investors and home owners to a host of risks. In addition not having the correct cover or protection in place can put you at risk in the event of something going on wrong.

For example, if you were to not have the correct cover in place and someone was injured or worse at one of your investment properties. Then you could have a lawsuit brought against you and you wouldn’t have full cover as you would not have the correct cover. In such a scenario you risk having all your u assets claimed if they are all in your own name.

Needless to say knowing which name or structure to buy an investment property in can be quite confusing. As such we strongly advise seeking advice from accomplished expert insurance advisers,  legal experts, accountants and financial planners. Such experts will be in a position to assess your overall circumstances and assist you implement a strategy that best meets your needs and is most suitable to your portfolio.

As a word of caution it is paramount to separate investment properties from other assets such as a home. Ultimately this ensures that claims are restricted only to the assets in question. Moreover, this accords some protection with claims only able to come against a single property.

Purchasing property

In essence there are three ways to go about procuring property. Firstly, you could buy property in your own name. You could also acquire assets, including property, in the name of a company. Lastly, you can purchase property in the name of a trust.

On average the most common way of buying property is in the name of the investor. This is due to the fact that this method is fairly simple to organise. The next option is to buy through a company. Buying like this allows liability to remain with company. As such shareholders are protected against any claims that may be brought before the company. Lastly, you can utilise the trust structure. Although a bit complicated, but essentially it means creating a legal entity to take ownership of property. As such the trust is separate from an individual or group of individuals.

Your portfolio ultimately holds your potential future financial security. It is therefore worth while to consider more expensive and comprehensive insurance for that peace of mind. To this end, obtaining professional advice from experts is highly recommended. For this reason you will be able to to get the right insurance and protection for your portfolio. We have barely scratched the surface on this topic, but this article should be sufficient to encourage you to take this topic seriously and start thinking about protecting your assets.

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