How to Invest in Property with Little or no Money

It's often said that investing your money in property is one of the surest ways to secure profitable returns. However, the fact remains that you require a hefty amount of money to make that investment in the first place, and loans aren't always easy to come by.

This, together with the amount of time it usually takes to see returns on your investment, is the reason many people choose to invest in the stock market instead, or let their cash generate interest in a savings account despite the lower returns.

But what if investing in property was as easy as depositing your money in a savings account? Let's look at some of the options available to those looking to get into the property market despite the ready money to do so.

Buying as lease

According to Iain Stewart from, buying as lease is the best way to invest and trade in properties internationally. This means you lease the property with an option to buy once the term (which can be anywhere from 2 to 25 years) is complete.

This presents a low-risk, potentially profitable option for many investors, and removes some of the hurdles associated with property investment. For example, you won't have to pay a 20 - 40% deposit on the property.

Bear in mind, though, that you will still have to make mortgage payments, and you'll be responsible for maintenance costs. However, you won't have to acquire a mortgage for yourself; something which is becoming increasingly difficult to accomplish in the current climate.

Also note that a lease option is distinct from the lease purchase in that the latter requires the lessee to purchase the home once the term is complete, whereas the former only presents it as an option.

Joint venture

A joint venture is when two independent parties form a partnership to control a particular commercial enterprise and share, for a time, the expenses and revenue that arise from said enterprise. Basically, it means you can invest in a property using someone else's money.

According to Property Investments UK, most joint ventures will see one party contributing the funds while the other does the work, and the most effective partnerships will usually combine a party that has the money but not the time with a party that has the time but not the money.

In this case, the biggest challenge for you will be finding the right partner. There may be many willing backers, but not all of them will have the personality and skill-set which complement yours. You'll need both the ambition and energy to impress potential investors, and the know-how to find one who can provide the assets that you lack.

Property investment companies

Some property investment companies offer schemes that encourage investors make contributions, with the firms themselves managing the enterprise in exchange for a share of the revenue. The House Crowd is one such company, offering investors a choice between 7.5% a year from the rental income based on the share they put in, or 6% a year plus a share of the profits when the property is sold.

Investors need to be careful and should do their research on the companies offering such schemes before participating. Furthermore, they will be required to make a contribution, so will need to have some funds on hand, but it will be significantly less than would be required if they were to invest in the property themselves.

For example, one such investor contributed a sum of £1000, but was happy to avoid the challenges of acquiring a loan, and can expect greater returns than what would be gained from depositing the same amount in a savings account.

Contemplating your own options when it comes to property investment? For advice on the UK property market, don't hesitate to contact the experts at Tepilo.

Disclaimer: The information and data provided are for general information purposes. They do not constitute investment advice nor can they take account of your own particular circumstances. If you require any advice on investments, you should contact a financial or other professional ad

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