Guide to Holiday Home Insurance Australia
Introduction - Australian nationals are investing in
buy to let property for rental purposes as well
as for
second homes and holiday homes, particularly in
coastal areas. An amazing 8% of Australian nationals now own second
holiday homes. The largest age group of holiday home owners are the semi -
retirement, the 50 - 64 year olds, who (according to recent studies), spend more
time in their holiday home than younger age groups with second homes.
These younger age groups tend to only occupy their holiday homes for 5 to 6
weeks per year; the rest of the time the property stands empty. The trend for
second home ownership is also to purchase within the State the homeowner lives
in to cut travelling time - bearing in mind the massive expanse of Australia and
consequent flying or driving times across the country to get from A to B.
A recent Trevor
Atherton study also showed that changes in lifestyle and financial pension
planning were driving the demand for holiday home ownership across Australia.
In addition, local residents where second homes are located (mostly sitting
empty) are sometimes getting angry about excessive noise and general disturbance
levels from holiday makers. Local councils have responded to residents
concerns piecemeal by creating new zones, taxes and restrictions on landlords
and holiday makers, to try and protect community spirit and local tax payers.
Over the last 20 years, the economic prosperity Australia has also attracted not
just Australian nationals but also overseas property investors from the
UK and other countries, (hoping to cash in on the rental and property boom).
The Australian Government has recognised this trend and has proactively
responded by new political policies, to protect its own citizens interests with
regards to access affordable housing and protection of the environment.
Holiday Home
Insurance Risks in Australia - whether the homeowner is an Australian
national or an overseas property purchase, all interest groups will need
adequate Australian holiday home insurance to protect the potential rebuild cost
of the building and to replace lost or damaged contents of the dwelling.
Assetsure can provide Australian
holiday home insurance. The main risk to
coastal based holiday homes is weather damage and the longer term impact of
climate change. In the last forty years, 95% of the largest 20 property
losses in Australia for general insurers have been weather related. Flood
damage accounts for about one third of the insurance resulting from damage to
property. Flooding is becoming more unpredictable as freak storms
create flash flooding, not just in flood plains situated near rivers and creaks
but also in coastal areas too. The total number of properties residing on
flood plains is approximately 170,000. It is essential that potential
holiday home owners check the small print of their holiday home insurance
australia policy document - in terms of exclusions, restrictions and levels
of cover. The 'Insurance Council of Australia' is working on a national
flood mapping model as at the moment local flood mapping is only undertaken by
local authorities. Having local knowledge of the risks that may impact the
value of your holiday home are critical - it is not always easy to find out what
these risks are if you are a foreign property buyer or investor living half way
around the world...
Buying a Property in Australia – Official Steps for Foreign Investors -
to control over speculation in the housing market, the Australian Government has
a restrictive
policy designed to force foreign investors to
formally apply to buy a property. It aims to stop speculative practices as well
as increase the number of property/ homes available in supply. This is to
ensure a slower more manageable growth in property prices and access to
residents of all incomes to purchase a second home. A summary of the conditions
and exceptions of this policy are listed below:-
Exceptions:
Conditions and Restrictions
-
Vacant land purchases must be developed on with 12
months
-
Purchases of existing residences must be occupied
within 12 months
-
Off plan apartment units in a larger development
are normally approved straight away, as long as; a) the dwelling has
never been occupied and b) less than half the units on the development
are owned by foreign property investors.
-
Property that is already occupied is not normally
available to foreign investors to purchase. The exceptions to this rule are
foreign nationals or companies with executives for are resident in Australia
for more than 12 months
-
There is no pre-approval process for overseas
holiday home investors. So if the application is declined (after you have
bought your holiday home) you will be forced to sell the property.
-
Decision normally take 30 days
-
The
Foreign Investment Online Application System
is designed to assist foreign investors who wish to purchase an Australian
holiday home
-
If you are seeking to buy a holiday home for
letting purposes be sure you familiarise yourself with the
regulatory rights of tenants living in your
investment property. For instance you must give the tenant a copy
of the Consumer Affairs Bureau booklet 'The
Renting Book'
So if you are seeking an holiday home insurance quote for a property in cities
like Alice Spring, Adelaide, Brisbane, Canberra or Melbourne why not see if we
can help. In addition, Assetsure provide overseas property insurance and
holiday home insurance for other countries including Australia, Austria,
Belgium, Bulgaria, Brazil, Canada, Cape Verde, Chile, Croatia, Cyprus, Czech
Republic, Denmark, Estonia, Finland, France, Germany, Greece,
Egypt, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Liechtenstein,
Luxembourg, Malta, Monaco, Montenegro, Morocco, Netherlands, New Zealand,
Norway, Poland, Portugal, Romania, Slovakia, Slovenia, South Africa, Spain,
Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom
(UK) and Venezuela.
