I am VERY new to property investing and have been reading about creative ways to purchase an investment property without a deposit or minimal deposit and don’t fully understand this concept. Could someone please explain this in more detail so at least I feel well informed about which ways to look at. Appreciate your help with this one!!
Leigh-Ann
Hi Leigh-Ann,
check out… https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=5411
not sure if the discussion will help, but it does touvh on the subject.
Hi Leigh-An,
Welcome to the family…
I’ll try to explain one way you can purchase with no money down.
Just say you buy a house for: $100,000
The required 20% deposit is: $20,000
The remaining loan amount is $80,000The vendor leaves $20,000 in the deal, meaning that you borrow the remaining $80,000 from the bank as normal, and usually you pay the vendor interest on $20,000 for a set term period i.e.$20,000 @ say 7% for 2 years. At the end of the fixed period you repay the amount in full, usually by refinancing.
Sometimes you can even get the “vendor finance” at no interest charge if they are motivated to sell.It’s great if you can do it!
Hope I have explained it clear enough for you!Good on you for thinking creatively,[:o)]
Del
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