How To Invest In Property With No Money

Many investing gurus believe that the only route to stable, reliable wealth is to invest in property. 

When you look around at some of the most successful investors in the world, this is true. 

But how do you get started if you’ve got no cash to invest? What are your options? 

Borrow Against Your Home

If you own the property you live in right now, you could potentially borrow against your home. The idea here is to dip into the equity that you’ve already built up by paying off a chunk of your mortgage and then using that as collateral to borrow more money. 

For banks, borrowing against your property makes intuitive sense. After all, when you first bought your property, you borrowed the full amount, minus whatever deposit you paid. 

If you bought your house a decade ago, the chances are that it has gone up in value, allowing you to borrow more than you did initially. Often you can get together enough cash to buy a small flat or terraced home that you can then rent out for profit. 

Remember, not all mortgage lenders will allow you to borrow for a second home, and most that do will want to see stellar credit history. 

Rent Out Rooms In Your Home

Here’s another idea to invest in property: rent out rooms in your home. 

Current tax rules state that you’re allowed to rent out parts of your home to lodgers tax-free for the first £7,500 that you earn in any given year. 

You can then use this money either as income, or to fund the deposit on your next property. 

Finding lodgers is easy. Websites like spareroom.co.uk can help. 

If you don’t want full-time lodgers and would prefer short-term lettings, then sign up for Airbnb. Homeowners can set the times of year that they want to welcome guests, giving flexibility. What’s more, many property owners find that they can charge high prices, especially if they live near tourist hotspots. 

Invest Along With Friends And Relatives

You might not have a lot of cash knocking around in the bank, but your friends and relatives might. You could all invest in the deposit together, sharing the ownership and mortgage repayments. You might not get a large share, but it is a good way in. 

If you have no money for the deposit right now, you could take out a small loan to fund it. Doing this is risky, though, as it will increase your debt-to-income ratio, something that banks consider when deciding on whether to grant a mortgage. 

Buy A Property ETF

You don’t have to have £20,000 sitting around in an account somewhere to invest in property. You can buy a share of property in the form of an ETF. 

ETFs or exchange-traded funds, usually track a pool of commercial and residential properties. You buy the ETF through your favourite investing app and then the company that manages it assigns you a share of ownership of all the properties in its portfolio. You’re then free to buy and sell in tiny increments.

Forget £20,000. With ETFs, you can start with £20. 

Our Pick Of Top Home Improvement Blogs To Follow

The Ugly Duckling House

The Ugly Duckling House Hi there! I’m Sarah. I’m a thirty-something single gal with a penchant for craft beer, dog snuggles, and rambling about my DIY renovation projects. I guess you could say that I like tearing my house apart and putting it back together again… enough to have done it for nearly a decade with no intention of stopping.

 

Good Homes Magazine

Good Homes Magazine From on-trend decorating looks and colours to the best buys on the high street and online, every issue of Good Homes Magazine is packed with hundreds of ideas to create beautiful interior spaces. A subscription to Good Homes will give you hundreds of ideas, plus free tickets to some great days out at our live shows.

 

Curbly

Curbly Curbly is a DIY design community for people who love where they live. Everyone should have a happy, beautiful home. With the right tools and knowhow, every person can create a place that fits their personality. Curbly helps you bring out the best in your home.

 

DIY Show Off

DIY Show Off Hi! I’m Roeshel, DIY enthusiast and blogger at DIYShowOff.com. Welcome to my online home! It’s so nice to “e-meet” you! We live in the Butler (north of Pittsburgh, PA) area. I’m a wife, mom to two grown girls adjusting to an empty nest and new grandma to one cute little guy. Online, my blog lives in the home DIY and decorating niche. Welcome, friends!

 

Homey Improvements

Homey Improvements Most of the articles you read here are written from me, James. I’m a part time construction worker, part time freelancer and part time full time husband 😉 (brownie points with the wife). We live in a beautifully built house we call The Burrow (yes, a reference to Harry Potter). We soon hope to fill it with kids but before we can we have to expand! We are constantly doing little home projects and finding out tips and tricks to living out our homey lives.

 

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Remodelaholic Hey there, I am Cassity! Nice to virtually meet you, Welcome to my blog!My casa es su … entertainment! This blog is about DIY at its finest.  We are obsessed with it and so are you, so while we’re working and have nothing to show you of our own projects we show off yours.

 

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Builders West London - OnToplist.com

How To Avoid Paying Council Tax On An Empty Property

As a landlord, you do need to consider the issues of an empty property. Specifically, we’re talking about paying council tax and the recent surcharge that is aimed at landlords with empty properties.

Thankfully, there is a way to avoid paying tax while a property is empty. But first, let’s consider what tax you could be expected to pay for your empty property.

What Are You Expected To Pay?

With 2017, it was reported that there were at least 200,000 empty properties across the UK.

These properties are worth £40 billion in total. That same year, Philip Hammond announced plans to get these properties filled, encouraging owners to either let or sell.

The 100% council tax premium for empty properties is a massive issue for landlords and property owners.

The premium means that councils and local authority can charge double what they could previously for empty homes and houses.

As such, landlords with empty properties will be paying double what they should be in council tax.

But it’s not just landlords that are feeling the squeeze. Many people have empty properties that are largely empty.

How can these individuals avoid paying a massive council tax bill each month?

Let It Out

If you haven’t already considered this, you might want to think about letting out the property.

With management companies, this can be a completely off hand experience where it doesn’t eat away into your private time or cause you any stress at all.

You’ll also be able to avoid some of the most expensive tax issues and ensure that you are getting an extra income as well.

Know The Exceptions

You might find that local authorities are keen to get you to pay even if your property is not technically empty.

First, you need to be aware of the definition of an empty property. You might have left your home ‘substantially furnished.’

If that’s the case, then it is not empty, and therefore you are not chained into paying the surcharge.

As well as this, the property may have been empty for less than two years, and if that’s the case, it is not considered empty at all.

This is great news for landlords letting out to tenants and leaving them empty over the summer months.

There are various other exemptions to be aware of as well. For instance, the original occupier of the property could be in prison, in the armed forces or living in a care home.

In any of these situations, council tax does not need to be paid.

Getting Discounts

Council tax is controlled by the local council tax office. As such, it is worth contacting them to find out whether you are liable for council tax for your empty property.

You might find that you are entitled to some sort of discount depending on your situation. While this won’t wipe out the council tax completely, it will make it a lot easier to pay.

Indeed, it is possible for councils to give property owners a discount that allows them to pay absolutely nothing.

This is determined on a case by case basis.

We hope you find this information useful when looking for ways to avoid council tax on an empty property.

Make Your Home Smarter With AI

You’ve got a smartphone, but have you got a smart home? If you’ve haven’t tapped into the growing trend of AI yet, it’s time to discover what awaits you if you choose to live in this wonderful world.

Artificial intelligence in the home

If you’re not already conversing with an electronic device on a daily basis, there’s every chance that it’ll only be a matter of time until you cross to the AI side its also a great addition to any property refurbishment project.

You only have to turn the TV on or browse a few websites on your phone or tablet to see or hear adverts for appliances that promise to make your life easier.

Take Alexa, part of Amazon’s Echo range, as an example. Launched in 2014, Alexa is a virtual assistant, which can do everything from playing songs to telling you the time and the weather forecast. Sales of Alexa hit 2.5 million in the first quarter of 2018, and this wasn’t even the most popular smart speaker. Google Home sold 3.1 million units in the same time period. The chart below shows the dramatic rise in popularity of voice speakers and home assistants in recent years.

Source: https://voicebot.ai/amazon-echo-alexa-stats/

Artificial intelligence is not just designed to eliminate mundane tasks and make life less stressful for humans.

It can also play a role in helping you do your bit for the planet. With many of us keen to go green, inventions such as smart thermostats are an excellent addition to the home. AI can track your usage and analyse your habits to regulate your heating systems, reduce bills and adapt your home environment.

The Nest Learning Thermostat 3rd Generation device, for example, uses data related to your location to ascertain when there’s nobody at home and shut off the heating system.

It also uses this intelligence to activate home security systems, so you can kill two birds with one stone. You’re not only reducing the risk of wasting energy and overspending on electricity. You’re also keeping your home safe.

You can make your home even smarter by connecting different AI devices. A Nest thermostat, for example, can work with a Google Home device.

On the subject of security, another device that is making waves in the AI marketplace is the doorbell camera and associated front door security systems.

In years gone by, most of us relied on an alarm, which produced piercing noises, to protect our homes. Today, using sophisticated AI, we can monitor our driveways on the go.

It doesn’t matter whether you’re on the train or at the office, if there’s somebody lurking around your front door, you’ll be able to see them and even talk to them. You can connect devices to smartphone apps and keep an eye on your property 24 hours a day.

It is estimated that more than 22% of burglars access properties through the front door, so investing in smart technology could reduce your risk of theft significantly.

If you haven’t joined the AI revolution yet, maybe it’s time to check out what’s out there and start enjoying the benefits of smart living.