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- January 29, 2023
How can I invest in property with little money?
The answer to this question is yes and no. You do need money to invest in property, but you don’t need a huge deposit.
There are many ways to invest in property with little or no money. The first step is to understand the difference between investing and speculating.
Investing involves buying a property for its rental income, with the intention of holding it for a long time (ideally 10 years or more). Speculating involves buying a property with an eye on resale value appreciation.
When you buy a property to rent out, there are three things that affect your ability to make money:
- Rental yield (i.e., what percentage of the sale price you can rent it out for)
- Capital growth (i.e., how much your asset will appreciate over time)
- Cash flow (i.e., how much cash you generate from your asset each month)