Can I Invest in Property with No Money?

May 9, 2021

|

By Rentvesting Admin

Home
/
News
/
Can I Invest in Property with No Money?
Posted on Sunday, May 9th, 2021

This is an interesting question that we are often asked in this business. Our response is yes, but it is not all black and white. While new buyers do not need thousands of dollars to put into a venture, you’ll need knowledge, confidence, and evidence-based applications for your dreams to be realised.

Read on to find out how making a small investment, will be the beginning of your future.

Tips to investing in property with minimal funds

I am a beginner – what steps should I be considering?

There are key factors to think about before delving into the world of real estate. If you are new to the game, we have compiled a list of mistakes, risks and things to consider before beginning. Head over to our article here.

Vendor financing/ seller financing

When buyers are unable to secure a loan from financial institutions, they may opt to seek vendor financing from the sellers.

One proven way to invest with little to no money is through vendor financing. This takes place with a real estate agreement, whereby the seller manages the mortgage process instead of a financial establishment. Instead of applying for a conventional bank mortgage, the buyer signs a mortgage with the seller instead.

Through a joint venture

Establishing partnerships to allow you to buy with little or no money is common. If you want to buy a property that is financially unviable alone, then a joint venture may be right for you.

An equity partner is an individual whom you bring into a transaction to help with financing. There are different ways that partnerships may be arranged, and it is up to the buyer and the partner to come to a suitable contract.

By exchanging houses

Trading houses is another proven and sustainable way of investing. By trading these (for example a new one for an old one), you will both obtain a new property, and also avoid capital gains associated with selling it.

Through fractional property investment

Fractional investment (such as with Bricklet or BrickX) is building momentum across Australia, and with great reason.

It enables you to buy a portion of a property with limited funds, so you can reap the benefits of partially owning a place without the upfront and ongoing costings. We find that renters, under-35s, and those low on money are among those finding thriving in the fractional market.

Let’s wrap it up

If you are low on funds but have an abundance of goals and ideas, choosing a professional organisation who can support you to purchase with minimal funding is crucial to your success.

Our team is knowledgeable about vital factors that will affect you, such as changes in market conditions, predictions, attitudes, locations, timing, rates and borrowing power.

For more information on how to go about this, and to find out how much you can borrow before starting, reach out to us today.

 

NEWSLETTER

Want to learn more about Rentvesting?
Do you need help finding the right loan for your investment?