Rise High Investor Weekly Video #15 – How to get into the property market with a small deposit



1. Family Guarantee or Pledge

  • How It Works: A family member, like a parent, offers equity in their property as security for part of your loan.
  • Example: You take an 80% loan against your investment property and use a smaller loan secured by your family’s property to make up the remaining deposit.
  • Alternative: A family member might gift you money to boost your deposit.

2. Personal Loan

  • While it’s an option, taking out a personal loan to supplement your deposit should be approached cautiously due to higher interest rates and repayment obligations.

3. Partnering with Someone

  • You can pool resources with a friend, relative, or spouse to buy a property together.
  • Caution: Partnerships can lead to conflicts over time, so ensure clear agreements are in place or consider alternatives.

4. Buy a Cheaper Property

  • Adjust your expectations and aim for a property with a lower price tag. For example, consider a $200,000 property instead of a $450,000 one.
  • A smaller deposit requirement might allow you to purchase independently.

5. Keep Saving

  • Prioritize saving by paying yourself first. Allocate a substantial portion of your income to your investment goals every time you get paid.
  • Consistent saving will help you build your deposit over time.

6. Work with a Mortgage Broker

  • A good broker can connect you with lenders offering lower deposit requirements or creative financing solutions.
  • They may help you buy sooner than expected by tailoring options to your situation.