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  • Entrepreneurs

    Can I invest in property with little money?

    I'm inspired by "Rich Dad Poor Dad" book and want to invest in real estate, but I haven not enough funds to buy a property myself. Robert Kiyosaki tells about loans, but I am afraid about huge interest rates.

    Are there any alternatives?

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    Hi James,

    Forgive me, but your question seems a little muddled.

    You can purchase property with cash outright, or you can use a deposit and a BTL mortgage to leverage your own cash.  BTL mortgage rates are at an all time low, and Robert Kiyosaki is American, so you need to understand the UK finance market if you are intending to buy here, not the US market.

    If you cannot afford to buy a property, then you are going to struggle to get involved.

    It really depends on how much money you DO have?

    FYI ... The moderator has deleted the second duplicate thread you posted as we do not allow duplicate postings across multiple forums.

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    Thank you for advice! I am planning to invest several thousand euros, maybe

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    Sorry to bust your bubble, but today to move forward In BTL you need cash in the bank

    We live in very different times to when RDPD was written and we are not in USA

    So get saving if you want to be a landlord ...

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Thanx! But I do think that in the modern world there are ways to invest with little money

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    Yes maybe in Stock Market - but in property as a landlord you need min 25% cash deposit plus all buying fees and typically a min £25k earned income for a BTL loan for the 75% LTV mortgage.

    Unless you are planning to invest in pretty deprived locations with predominantly benefit tenants you will need to be buying at around maybe £100k with £30k cash upfront for deposit/fees.

    Are you a UK resident as managing a rental from a distance is tricky/expensive?

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    This is a question more about what to do with surplus income when you like the investment opportunities arising from property.

    The above comments are all valuable if you are looking to buy property in your own (company) name. However you can gain exposure in property via the financial markets. Here are some examples (and I am not recommending any as one needs to know more about you first!):

    British Land - Commercial property (the income you receive will be taxed as dividend income)

    Grainger Trust - Residential Property (the income you receive will be taxed as dividend income)

    Any Real Estate Investment Trust (REIT) (Your income will be taxed as property income as they need to distribute 90%+ of their net income to benefit from REIT status)

    You could of course join a property investment club but I don't know much about these other than the horror stories I hear.

    Best of luck

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    Hi James,

    I remember when I first read Rich Dad Poor Dad - I was truly inspired after reading it. But you have to make sure not to jump in head first - the industry is riddled with hurdles and obstacles.

    My first suggestion is keep reading and keep researching. In this scenario books and the internet is definitely your friend. I would suggest moving on to books such as: How to win friends and influence people, the richest man in Babylon, and even Robert Kiyosaki's Rich Dad Poor Dad Quadrant. After this start with Rob Dix's Property Investment for Beginners and then The Complete Guide to Property Investment.

    Once you read this then complete a goal setting document maybe like the one by Rob Moore.

    After all this I think you will have a better idea about what strategy is best for you and become more familiar with the UK finance market.

    These are the steps I took and I found this helped me refine what I was looking for. As always happy to answer any questions if you have any.

    Hope this helps.

    Rob

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    **All comments made from this account are not to be relied upon; you should always seek independent advice**

    Rob Davis BA (Hons) MSc MRICS

    Co-Founder

    Harben House, Finchley Road, London NW3 6LH

    Mobile: +447 92112 5161

    Email: Rob.davis@joiningventures.com

    Website: http://www.joiningventures.com


    Such great recommendations! Super, I will read everything you advised

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