{"id":34507,"date":"2021-09-11T10:11:28","date_gmt":"2021-09-10T22:11:28","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=34507"},"modified":"2021-09-11T10:11:28","modified_gmt":"2021-09-10T22:11:28","slug":"how-to-start-a-property-portfolio-with-just-15000","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/how-to-start-a-property-portfolio-with-just-15000\/","title":{"rendered":"How to start a property portfolio with just $15,000"},"content":{"rendered":"

PHOTO: Scott Fraser says he was inspired to create a workable investment model for those struggling to get up the property ladder<\/strong><\/p>\n

REPUBLISHED WITH PERMISSION | API MAGAZINE<\/a><\/strong><\/p>\n

An Australian-first investment model has been created to allow investors to begin their residential property journey without having to sacrifice, scrimp and save for a huge deposit.<\/p>\n

Inspired to help those shut out of property investing by Australia\u2019s record-high house prices, The Investn Group chief executive Scott Fraser created a model to help people take those crucial first steps into real estate ownership.<\/p>\n

\u201cWe don’t just want to be another property company with no clear point of difference, the aim was to have a clear market-leading niche on who we work with, giving people that don’t have enough deposit a chance to get started,\u201d Mr Fraser said.<\/p>\n

\u201cNo one else is helping first time buyers offering a solution to a large problem.<\/p>\n

\"Gavin<\/a><\/div>\n
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\u201cWith such high property prices, there is a huge problem for people being able to break into the property market, as it can take many years to save enough money and you are fighting against rising property values.<\/p>\n

\u201cThere is a major misconception that to break into the market you need a 20 per cent deposit of the median Sydney property value, which equates to 20 per cent of $1 million dollars, being $200,000.<\/p>\n

\u201cAs time goes by it just gets harder and harder as you need an even higher deposit as values rise over time.\u201d<\/p>\n

Under our model, individuals provide as little as $15,000 – $20,000 which is used to take care of costs such as stamp duty, conveyancing and mortgage fees. The Investn Group provides the 10 per cent deposit.<\/p>\n

Upon settlement, the individual buyers are responsible for servicing the mortgage, while The Investn Group holds a 10 per cent stake in each property.<\/p>\n

The properties are managed by an external independent real estate agent that disperses rental income directly to you each month.<\/p>\n

To ensure the properties are investment grade, The Investn Group researches and sources opportunities via its national network and completes due diligence to achieve good cash flow in fast growing corridors.<\/p>\n

\"Property<\/p>\n
This property is being built for a client using The Investn Group model.<\/strong><\/em><\/div>\n<\/div>\n

Mr. Fraser said properties targeted had to have good prospects for strong capital growth and to produce high yields.<\/p>\n

\u201cAs long as there is vacant land in the location and the research stacks up for good future capital growth, it\u2019s an option,\u201d he said.<\/p>\n

The ideal client for the model, Mr Fraser said, was a rentvestor that lives in the suburb they love, builds a portfolio over a decade, then sells their investments and buys their dream home with limited or no debt.<\/p>\n

Selection criteria includes having full-time employment with a gross income of at least $65,000 per annum for an individual and $110,000 per annum for a couple, at least three months in their current job and a good credit history.<\/p>\n

Mr Fraser said it had taken several years to create the offering and a legal structure that would work for both The Investn Group and the individual investors.<\/p>\n

\u201cI see a huge pool of people that want to buy a property and can service a mortgage, but don’t have enough capital\/ deposit to get started,\u201d he said.<\/p>\n

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\u201cI have seen fractional investing being offered via a few companies where you buy a brick in a property or small percentage, but you can’t leverage against the brick you own with a mortgage and use the bank’s money to get a higher return on capital invested.<\/p>\n

\u201cUnder our model, if a $500,000 property doubles in value over time, your return on capital invested on $15,000 is 2900 per cent or $435,000 gross capital return.<\/p>\n

\u201cCompare that to buying a brick for $25,000, if it doubles in value in 10 years, you end up with $50,000 and a 100 per cent gross capital return.<\/p>\n

\u201cThe model is not solely hinged on how fast your property grows in value to be able to buy another property, as soon as you have another $15,000 and you can service another mortgage you can buy again.\u201d<\/p>\n

For more details on The Investn Group\u2019s co-investing model call 1300 446 445 or head to\u00a0Investn.com.au<\/a>.<\/p>\n

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