There are several strategies to get into property investing, without putting much money down.
You do have to have a bit of an appetite for risk and laser focus, but it can be done.
Here are some tips and strategies from RealRenta:
- Buying off the Plan
The strategy here is to buy a property, before it is built and provided it increases in value by the time it is completed, you borrow against the new value, to fund your deposit. You will need to choose an area, where prices are expected to surge, as this strategy can be really risky.
- Joint Ventures
If you have a partner you can trust, you can get them to sponsor the upfront costs of the purchase and you can then split the proceeds. Set out a clear budget and time frame, for holding onto the property.
- Option Agreements
With this strategy, you get the vendor to agree to an option agreement, where you have the right (but not the obligation), to buy the property. Then you find a way, to increase the value and on-sell it for a profit.
The trick is to find a motivated vendor, usually in distress. During the option period, a buyer has the option and exclusive right to buy the property, but not the obligation.
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