How much risk is right for you?
Do you enjoy taking risks or break into a cold sweat over the very thought of making a loss?
How we feel about risk, money and personal finances is often influenced by our individual circumstances, personalities, income or previous financial history.
Understanding your risk profile – exactly how much risk you feel comfortable with – is extremely important and can help determine the right type of investment.
The level of risk a single person with a great job is prepared to take on might be completely different to that of a single income family or a self-funded retiree.
The last thing you want is to enter into the wrong type of investment which can leave you feeling financially or emotionally stressed – or both!
RentCover Executive General Manager, Sharon Fox-Slater, said it is important to consider your personality, circumstances and priorities when investing.
“For instance, if you have a family to support and don’t have a huge income, you might value rental yield and a strong occupancy rate over capital growth.
“If you are single, however, you might be happy to dip into your pocket each month on a negatively geared property you believe will grow in value.
“While all investments carry risks, quality landlord insurance can help to provide property investors with better peace of mind about their hard won asset.”