5 Reasons Why Property is a Sound Investment

Buying your home is the probably the first property investment you make. You will see it increase in value over years and periodically it will decrease in value. However, it will never loose its total value like other investment vehicles such as stocks and shares and is therefore a sound investment. The principal reasons why property is such a sound investment are as follows:

Property Provides Safety and Security

Despite any economic downturn, property never looses its entire value. In the longer term, it will always see a return to former values before increasing again. Successful investment in property is the safest way to gradually build a substantial nest egg for your future.

A successful investment has the ability to generate income and equity growth over years. The downturns we see during a recession are merely temporary and have little bearing on the long term security and returns you will enjoy. This is why property is the cornerstone of so many portfolios; it creates wealth.

Property Returns Income and Equity

Renting out property gives you income. While your property increases in value over years you can be paying for it on a “buy to let” basis for example and later enjoy the benefits of the income generated.

Having a property portfolio built up over years allows you to live comfortably from not only the income but from the knowledge that your investment is gaining in value year on year. Your equity and capital growth is your wealth.

Property Allows You to Control Your Assets

Where you buy property and what you do with it will determine the rental income and to a large extent the capital growth. “Location, location, location” has long been the property investors mantra. Buying in an up and coming area whether it be in your city or in another country, always consider location in every way.

Quality will always attract quality which in turn provides better income and equity. By providing quality furnishings and decorations inside your property, for example, you will undoubtedly see a better return on your investment. You are in control so you can use that to your advantage.

Property Investment Gives You Leverage

Why property is such a good investment proposal for you is the leverage you can use. It is not necessary to have vast sums tied up in your new property nor do you need a fortune to become a private investor.

For investment purposes, you can borrow the larger part of the property value and generate a high return on the capital invested. With a carefully selected quality property it is easy to use this leverage or gearing mechanism and requires only a minimum amount of your personal money as investment.

Property Has Other Benefits Too

Taxation concerning rental income and capital gains is a worry for many new investors. However, in many places worldwide there are incentives that vastly reduce this problem and in certain instances the problem does not exist at all. This is particularly true when you invest in overseas property.

Understanding Commercial Insurance Risks and Business Insurance Covers

If you own or manage a business, either large or small, you will require some type of insurance to protect your company against the various risks and potential multitude of claims, that your business will face.

Commercial insurance or Business insurance as it is commonly known, is a complicated area of underwriting and because all businesses are different, and face different risks depending upon the nature of the company, various packages and combined policy covers have been introduced by insurance companies and commercial broker schemes, to make the process easier.

An example of a small business insurance package which is commonly sold online is the Tradesman’s insurance package, which includes all elements of cover required by a small business or self employed trader such as basic liability covers and theft of tools.

Other small business insurance packages that are trade specific and can often be obtained online are available for shopkeepers, offices, surgeries, hotels and guest houses, restaurants, public houses and builders.

Large companies will be offered what is known as a commercial combined policy which has many different elements of cover which can be combined to make a bespoke policy for the enterprise. Most large companies will require some degree of risk assessment before the policy is underwritten, which may often include a visit to the business premises or site, and for this reason these types of larger business usually employ the services of specialist commercial insurance brokers.

Business Risks

The largest risk that a business faces is from liability to others, and the potential costs and damages a company could face if a claim was made against it.

All companies are required by law to have in place liability cover, called Employers liability insurance or EL, to protect their staff against all potential risks and accidents  while in the workplace.

Business liability insurance is usually sold as a package and will always include Public Liability, often just known as PL, which protects the company against claims from the public whilst on the business premises.

A further type of liability insurance called Product liability is also available to companies under a commercial liability policy which protects the company against claims made for design or manufacturing faults in the product.

Company directors can also protect themselves against liabilities with Directors and Officers insurance (D&O) cover.

Property Damage

Most business large and small will have premises that need protection against buildings perils such as fire and flood and commercial property insurance is available to cover all buildings insurance risks. Similarly commercial contents insurance for business premises is available which covers office and business equipment including files and data processing against the common perils. For companies that carry stock, this type of business contents insurance can be extended to cover risk such as deterioration and damage.

For the small businessman who works from home these covers are often available with strict limits of indemnity, as a bolt on to a standard home buildings and contents policy. This type of cover is often effective for self employed people with just a computer and a home office.

Business Contingency Cover

One of the largest problems faced by a business is that of how to continue in business should the worst occur, for example a fire that destroys the premises. In order to deal with this Insurance companies have devised a cover called ‘Business Interruption Insurance’. Based on your previous years annual turnover, this protection insurance covers your company against all losses caused by interruption to trading due to any of the perils mentioned on the policy and will pay out on a indemnified basis for the period of cover agreed in the policy. Most policies will also offer some type of alternative trading accommodation to enable you business to continue whilst the premises are being repaired.

Additional Commercial Risks

Because commercial insurance is designed to cover all classes of business, there are many various trade or business specific covers available which can be added to a combined policy. Examples of these covers include loss of licence to trade, glass cover, goods in transit cover, book debts, commercial vehicle insurance, hauliers cover, warehouse cover, engineering insurance and plant inspection services, and theft by employees.

Outside of most combined policies are additional risks more often sold under separate policy covers, that should be considered to protect your business against all eventualities.

Examples of these are, Commercial Legal Expenses insurance cover which protects the company against claims made by employees for unfair dismissal and allows you to bring cases against suppliers.

Various protection policies are also available for businesses including Keyman insurance which provides cover against the loss of key people within your organisation. Business mortgage protection provides a monthly payment for business premises should you suffer and accident or sickness. Group ASU policies are also available to protect your staff and employees.

Purchasing Business Cover

Purchasing commercial risks insurance can be a daunting experience for the uninitiated small business owner and unless the risks are straightforward and can be underwritten online, it is advisable for all companies to approach the services of a local or regional commercial insurance broker. Insurance Brokers will not only be able to assess the complete range of risks that your business is exposed to, and provide the correct levels of cover, they will more often than not have a unique local knowledge of the risks involved and will be able to negotiate premiums that reflect the nature of the risks. Furthermore, in the event of a claim, and as most businesses will be faced with claims at some point in their trading life-cycle, the broker will handle all the settlement negotiations with the insuring company and allow you to continue what you do best – running your business.

The Garage, Cars and Doors

As quickly as someone can announce the title of this article somewhere not only in urban areas of living, but also those suburban ones, too, a new apartment building is being built, a condo conversion is taking place. High rises, town homes, patio homes and lofts are being erected as they are extremely high in popularity, since the bigger, free standing home may not always be better for the urban and rural trekkers out there.

Many of these multi-unit meccas are also fully self-sustaining centers with convenience stores, coffee and internet cafes and even barber shops or salons built right in, if not located directly next door.

While these types of homes are certainly appealing to those who prefer more by way of ease and less in the way of inconvenience there remains one thing missing for the more assured security and safety your vehicle, a great deterrent, the personal home garage door.

Some of these dwellings and buildings do come with a parking garage but more often than not the property owner or tenant is assigned anywhere from one to two parking spaces outdoors.

While many arguments could be made that the indoor parking garage is a safer alternative to a personal garage with some containing security cameras and gates, possibly discouraging large numbers of criminal activity, different discussions could conclude that outdoor assigned spaces are better with easier visibility of the vehicle, more pedestrian traffic to deter theft and identification of those conducting illegal acts, however neither of these options can truly stop the ever increasing amount of car and truck break-ins and theft as effectively as the home personal garage door.

In a time where home requirements and preference are of an individual choice more than a necessity the issue of a break in occurring must always come to mind as a possibility that is as real as a vehicle lock out, the breaking or losing of keys (standard or keyless, transponder, V.A.T.) which in some cases are in need of reinventing or manufacturing, and the changing or fixing the locks or ignition of a vehicle on the premises.

In a condo community, apartment building or any of the numerous multi-unit residences that exist, or are being built, an intelligent and sensible suggestion would be that residents and building and maintenance staff would be extremely wise to familiarize themselves with a locksmith and his or her services in their local area for any of these frequent circumstances.

Remember to ask the locksmith as many questions as you might have in order to help educate yourself as much as you can regarding the appropriate measures and steps that can be taken for break-in and theft deterrence, as a locksmith can tell you, a career spent working in this environment also provides much needed insight that those outside of the locksmith industry might not think of.

Theft and criminal activity does happen in these open space parking lots and parking garages that appear secure. Protection of ones vehicle and knowledge of prevention work together!