Simple steps to help maintain your all-important cash flow

Owning an investment house or apartment is a dream for many, but can become a costly nightmare if you are not prepared.

According to the ATO, over 70% of investment properties rely on negative gearing, which means that in 70% of cases, landlords are paying out more to own and manage a property than they are making in rent. In addition, St George bank reported that 55% of Australians found hidden and sometimes costly problems after they had purchased a property. This highlights the need for planning, including looking at products that can offer some level of protection in the event there is an unexpected and costly event.

The main unexpected impacts on cash flow are:

  1. Unforseen maintenance, repairs and other expenses. Often it’s hard to predict when appliances will fail, a drain will block or you will have problems with the power systems. Lonergan Research found (July 2012), 28% of home buyers had unforseen plumbing problems. The cost of repairs can be small or could run into the thousands.
  2. Problems with tenants can be an investor’s worst nightmare. They might refuse to pay rent or leave or could significantly damage the property. These issues can take time to resolve and cost a substantial amount in repairs and lost rent.
  3. Another factor that can impact on an investor’s cash flow is interest rates. Can your cashflow manage a rise in interest rates? If not, it may be time to look at fixed rate loans.

You can go some way to protecting yourself against expensive costs, by being proactive. If you wait until the problem occurs, it may well be too late.

There is a range of unique products on the market that, depending upon the circumstances, could help you manage your exposure.

HomeSource’s Landlord Assist is a reliable property maintenance and emergency repair service that can save you both time and money. For the fixed cost of $399 per annum, Landlord Assist covers the labour costs of fully licensed, qualified and insured plumbers and electricians to work on your property. You have four call outs per year and are covered for repairs, maintenance and emergencies 24/7. Go to for more information including terms and conditions.

Landlord Assist is the smart way to manage some of your investment property’s maintenance and emergency repair costs

Underwritten by Lloyds of London, PropertyCover’s Home Owner Cover is an insurance product that offers a range of benefits including cover for problems with the property’s major systems (including electrical, plumbing and locks) and appliances that may require emergency repairs and maintenance.

The cover provides up to $1000 per claim and $5000 per year in aggregate claims including repairs or replacement for appliances up to eight years old.

As with all insurance products, please read the product disclosure statement to make sure the product is right for you.

For more information on this and other interesting products visit and who offer other unique products to help the canny property investor.


Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

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