Even for seasoned investors, investing in property can be scary! What if I can't find a tenant? What if I lose my job? What if the tenant damages my investment?

All very real and very understandable concerns. Naturally being successful in running a property portfolio does mean ensuring that you grow your portfolio with the right kind of properties in the right kind of areas - but nothing is 100% guaranteed.

Which is why I always discuss my I.C.E strategy with all of my clients AND in case we haven't spoken before, I wanted to share it with you today!

Fear itself is an interesting concept - but in the case of overcoming it in the investing space I like to implement my In Case of Emergency technique. 

That is IF all of the worst things were to happen that are rolling around in your head - how much money would you need sitting in your account as a buffer to allow you to sleep at night?

For example if you lost your job and worst case scenario it would take you 3 months to find another one - how much would you need to survive? Let's assume you're on $100,000. 3 months would equate to $25,000 gross.

What if you didn't have a tenant for 3 months? If your tenant pays $600 per week - that would equate to $7800 ($600 x 13 weeks).

Let's make sure we take out a landlord insurance policy so we can cover any damages - and lets assume the premium is $3,000.

This would mean if you had sitting in an offset account at least $35,800 - you should be able to sleep at night knowing that your investment is safe. You won't have to sell in a heartbeat due to financial stress and your asset is protected.

Having this clarity if fantastic, but also understanding that in many situations clients actually borrow this additional amount when financing their investment (so the funds are sitting there ready from day 1) is a game changer!

Because so many are tapping into equity to assist in their investing journey, as long as they can service the loan - many people are setting themselves up to be able to sleep at night from day 1.

Obviously I am not a financial planner or accountant so this is something you can explore further if it has gained your interest (along with your broker) - BUT regardless of whether you borrow additional funds or not - being able to equate your fear into a dollar figure and then squirreling that amount away can mean the difference between getting in the market NOW vs getting in when it feels right (and then being priced out).

If you have other fears that are making you not sure whether you want to take the next step, please do make a time to chat - I will be happy to answer any of your questions :)

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