No deposit? Three ways to invest in property now
Difficulty saving for a deposit is the main deterrent for people investing in properties. Don’t worry, there are still ways of speeding up the process of getting your property portfolio up and running, even if you are unable to generate a deposit through cash savings. There are various options available that can enable you to invest now, and avoid having to save tens of thousands of dollars for a deposit.
Get a guarantor
A guarantor loan allows any existing Australian homeowner to provide a limited guarantee on your mortgage. So if your parents, or someone you know is willing to provide equity in their own property as security for your deposit, then you may be able to fast track your property investments. The primary security for the loan will still be your new property, but a mortgage on the guarantor’s property from a lender will support the guarantee.
Guarantor loans are most often used by investors who can afford loan repayments but don’t have enough capital to make an initial deposit. Guarantors must be aware of the significant responsibility they take on when providing security for a borrower’s read more