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How To Invest Without Big Capital

Mark Honeybone lists the ways you can get onto the property investment ladder without having a significant deposit.

By: Mark Honeybone

1 September 2018

How to start property investing without significant capital is the problem that many first-time investors face (or think that they will face), as well as the knowledge on “when” and “what” to buy.

Today I will cover the first point – how to start your property investment journey without much capital.

First things first – to avoid buying a wrong first investment property, it is essential to get educated on this subject and surround yourself with people whom you trust. Otherwise getting into a wrong first property can massively hold you up and stop you from starting the property investment journey on the right foot.

Last week I enjoyed reading an article in the Herald about a 21-year-old Jonathan Brownlee who’d bought ten properties in the past three years. He did this by getting help for his first property, and then having the desire, education (hopefully he will still be learning for decades to come) and an amazing attitude to do what others wouldn’t do.

So along with my other suggestions on this topic, I say that it is equally important to have the right attitude and desire. Anyone can do it; it just depends on whether you put your mind to it.

Here are a few ideas on how you can get funds to start on your property journey:

Kiwi Saver

If you have a KiwiSaver, use it to move into your first investment property. You might not need as much as you think if you are going to live there for a period of time and maybe renovate to add some real value.

‘Anyone can do it; it just depends on whether you put your mind to it’


Not everyone is fortunate to have parents or extended family who can help, however, ask around your family and family friends to see if that’s an option. If they have some money, or possibly equity in property themselves, ask them to help you get into property ownership and borrow some funds from them.

Property Groups

As I mentioned above, you should get educated on property investment, when you do, you will most likely join some property groups (there are lots around). A great place to start would be Property Investors’ Associations. If you want to get into property investor circles, you should join as many groups as you can to start with.

You will meet like-minded people and may even meet people in the same situation as you. Finding someone in a similar situation can lead to a Joint Venture partnership where you can purchase a property together.

Lower Your Expectation, Purchase Something Cheaper

You might live in Auckland and be overwhelmed by the amount of deposit you need to buy a property with. For example, 35% of a $500,000 property in Manurewa would require $175,000 to get you started, which may be far away from reality.

How about changing your strategy and looking at provinces where you can buy a property for much lower? Say you can find something around $150,000 which would only require around $35,000. I’m not necessarily recommending this option, but it may suit some to get onto the ladder. If you’re young and have flexibility and can go and live in it, you may only need a $20,000 deposit, or even less with a KiwiSaver.

Investigate what is happening in other parts of the country and find out where a real opportunity may arise for you right now. For example Christchurch, where many of our clients are taking advantage of opportunities and doing very well.

There are other ways like getting a part-time job or a side business to accelerate your deposit earnings. As I said there are almost unlimited ways of getting into investing in property, you have to believe, have the right attitude and a real desire to do it.

Property Ventures is a licensed Real Estate Agency that specialises in Investment property throughout New Zealand. They also have the NZ Property podcast/YouTube series where Mark interviews the property experts from around the country helping hundreds of thousands of investors. He can be contacted at [email protected] or 0800 NZPROPERTY (697767) Or watch the Podcast/YouTube video at www.propertyventures.co.nz/podcasts


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