![\"How](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/38c0ed1935aa1d33157fafe2ec14928a.jpg?resize=1024%2C768&ssl=1\")
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You don\u2019t have to have a huge budget to invest in property<\/a>. Picture: Getty<\/p>\n<\/div>\n Just because you\u2019re not flush with funds<\/a>, doesn\u2019t mean you\u2019ve got no chance of starting a real estate<\/a> investment portfolio.\u00a0<\/strong><\/p>\n Having little money need not be an impenetrable barrier to property investment, provided you\u2019re smart about it and consider a few key ideas throughout the process.<\/p>\n We asked the experts how potential investors with less cash behind them can get started.<\/p>\n Wakelin Property Advisory associate director Jarrod McCabe says it\u2019s important to not only be aware of what you can borrow and spend, but also what that amount will get you in your desired area.<\/p>\n McCabe says the starting point for an investment-grade property in Melbourne, for example, is around $450,000, but says many investors are able to get into the market if they lift their vision outside of the capital cities.<\/p>\n \u201cIf you\u2019re in New South Wales, perhaps something like Wollongong. Or in Victoria, places like Geelong, Ballarat and Bendigo.<\/p>\n \u201cIt\u2019s looking at period style housing<\/a>, generally within 1km or 2km of the main central business area, so you\u2019ve still got an element of scarcity value to your property. But it should be considered a stepping stone to get back into a city market where you\u2019ll just get more cross-section of demand level and more push on capital growth,\u201d he says.<\/p>\n Don\u2019t limit your home loan<\/a> options to only your usual bank, or you could be selling yourself short. Metropole Property Strategists CEO Michael Yardley says a finance broker can sniff out the best loan<\/a> deal for you, including finding a lender that will maximise the amount you can borrow<\/span><\/p>\n \u201cThere are still banks that will give you higher loan to value ratios.<\/span><\/p>\n \u201cThey\u2019re being restricted by APRA at the moment, as we know, but if you just go to one bank they\u2019re only going to give you their criteria, while other banks might be a bit more flexible and look at negative gearing differently or your bonuses differently. They have different serviceability criteria.<\/span><\/p>\n \u201cFind a broker who can help you get the right loan for your circumstances,\u201d he says.<\/p>\n You could invest in property with family or friends. Picture: Getty<\/p>\n<\/div>\n Yardley says many potential investors who can\u2019t afford a deposit on their own choose to buy the property with a family member or friend.<\/p>\n But that tactic does have some risks.<\/p>\n \u201cThe benefit is that, combined, you\u2019ve got two income sources \u2026 to prove serviceability and \u2026 give you a bigger deposit. The problem is you are jointly liable for the loan, which means if your friend loses their job or can\u2019t keep committing, you are responsible for the whole lot, not for half.\u201d<\/p>\n Some banks view properties in the Docklands as being riskier. Picture: Erinna Giblin<\/p>\n<\/div>\n As the property is an investment, rather than something you\u2019re going to live in, it\u2019s not important for you to be in love with it. Instead, look for a property the banks are in love with, Yardley says, and you\u2019ll potentially minimise the deposit they require from you.<\/p>\n \u201cIf you buy the right sort of property in the right postcodes, they\u2019ll lend you a higher loan to value ratio. For example, if you look at (Melbourne) 3000 and 3004, all those postcodes, Docklands, Southbank, it\u2019s the same in Sydney and the same in Brisbane. Where all those new and off-the-plan properties are, they expect you to put a higher deposit down because they see them as more risky.\u201d<\/p>\n The ultimate goal is for the property\u2019s value to increase as quickly as possible, so McCabe says to focus on one-bedroom apartments in low-rise blocks with less than 20 apartments on the property.<\/p>\n \u201cYou don\u2019t want to look at things that have got large numbers of apartments.<\/p>\n \u201cIt\u2019s generally an older style block, so you\u2019re in a quiet residential street that\u2019s still close to some sort of village, close to public transport, but not on a main road. Typically, it\u2019s something built between the 1930s and the 1970s and it must have an allocated car space,\u201d he says.<\/p>\n <\/p>\n<\/div>\n [ad_2]<\/p>\n link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Know your budget &\u00a0go regional<\/h2>\n
Consult a good finance broker<\/span><\/h2>\n
Invest with friends or family<\/h2>\n
![\"How](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/ee3d0d2d6bc0ac79f2b27b758a7267e3.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nFind a property the bank likes<\/h2>\n
![\"How](\"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2023\/01\/2368aca05a9eb4ffd25b699a21b36395.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nPicking the right property<\/h2>\n