Buying property without downpayment

[CashOutChick]

I read in an advertisement that it is possible to buy property without down payment. Is that possible?

 

[anley]

Not now it's not. You better have at least a deposit of 10% + a clean credit file otherwise no lender will be that interested in you.

 

[Hoggums]

I read in an advertisement that it is possible to buy property without down payment. Is that possible?

Maybe it's possible but the interest rate will be horrendous. You are also likely to end up in negative equity with the current decline in house prices.

 

[Trader333]

It is possible but not by any of the well known and conventional means. It involves option to buy agreements (not traded options) and it can be very highly profitable. This only applies if you know what you are doing and how to go about it which almost everyone doesn't.


Paul

 

[shadowninja]

Maybe it's possible but the interest rate will be horrendous. You are also likely to end up in negative equity with the current decline in house prices.

That's what I was going to write.

 

[gedward3]

Hey CashOutChick,

Im a broker in the mortgage business and yes you can get some deals like this if you go through a broker and not the high street lenders.

There are still 100% deals out there in the market enabling no deposit as long as your income stacks up. Even still possible with a mild adverse credit history. Doesnt always mean an extortionate rate either if you know the right lenders in the market.

Ther are various other ways out there as well

If you have any questions send me a pm and i'll be more than happy to answer any questions you may have.

Ged

I read in an advertisement that it is possible to buy property without down payment. Is that possible?

 

[Silent.Trader]

I read in an advertisement that it is possible to buy property without down payment. Is that possible?

Sure, if you can provide some sort of collateral and/or are able to provide other securities (e.g. a secure future income) there should be no problem. It of course also depends on the price, type and location of the property and your personal situation.

Basicly, if you're good for the money and you can prove it you can lend as much as you like. If there are serious doubts about your credibility you may have a hard time to even get a small loan.

grtnx
Wilco

 

[shadowninja]

House prices down

 

[Choicey123]

Note that there are lots of adds encouraging people to learn these skills of purchasing property without down payments, essentially they are trying to sign you up to a course and will then encourage you to buy into new developments that they have "negotiated a 15% discount on" with the developer. Essentially they make money out of you signing up to their course & a large back-end commission from the developer.
The concept does work when there is a Bull market in the property markets, such as over the past years. However, as your property portfolio grows using leveraged cash you are at risk of taking a big hit when the markets turn and getting negative equity. This is what is happening at present and many people are long property which they have to fund, thus are trying to unwind positions.

Gedward3 can pont you in the right direction on mortgages but they are thin and few and do have tough rates that may not be worthwhile at present. My advice is wait until property prices look set to uptick, interest rates fall and most importantly.....do excessive amounts of due diligence on any projects you buy into!
There are lots new, overpriced developments out there that are due a sharp shock!

 

[Trader333]

Note that there are lots of adds encouraging people to learn these skills of purchasing property without down payments, essentially they are trying to sign you up to a course and will then encourage you to buy into new developments that they have "negotiated a 15% discount on" with the developer. Essentially they make money out of you signing up to their course & a large back-end commission from the developer.

That is not what I was referring to in my above post. I meant that you can literally secure the rights to ownership with no money at all and make substantial profits in the process whether the market is going up or down.


Paul

 

[anley]

Just wondering is it still impossible to lose money on property 'because it only ever goes up'?

PS. Yep, watch those 'property seminars' because the majority of them base their business models on 'lambs to the slaughter', ie they'll use all of their clients to enrich themselves via all the kickbacks they receive from all the nice people they'll introduce you to. The same people that will 'help' you 'leave the rat-race' and 'spend more time with your loved ones' or the one I really like where they show the guy sitting by the pool with his laptop

PPS. Wonder how Doji Darren is getting on with his 'Future Millionaires Only Property Investing Master Class'?

Has anyone been and if so are you a millionaire yet?

 

[Gumping]

Me and the missus went along to one of the free seminars hosted by these property investment cowboys. Fromn their name, they appeared to be trying to maneuvre me into the easiest track for overtaking on an athletics course, if you know what I mean

Anyways, the missus managed to get her hands on a set of videos of the actual paid-for seminar, which we duly watched.....what a ridiculous waste of time!! I learnt absolutely nothing from watching them. I didn't even own my own home at the time, and I still understood more about property investment than all the course material layed down there. I don't think you even needed to read any books, study any websites or view any statistics to get the idea of it - two eyes and a pulse would probably suffice!

Basically: find people in deep sheeyite and offer them below market rate for their property. Or of course buy all of the lovely off-plan investments offered by the nice men in sharp suits at the end And of course to fund it all with mortgages from the nice man in the not-so-sharp suit :innocent:

 

[shadowninja]

Yes, those adverts you hear on the radio worry me. "I attended a XYZ property course and now I have a portfolio worth over £1m." You mean you have £1m of debt and are probably crapping yourself at the incoming recession. Well done.

 

[Trader333]

You mean you have £1m of debt and are probably crapping yourself at the incoming recession

Not necessarily it doesn't have to be like that although the type of adverts that do this then it probably is.


Paul

 

[TWI]

You are all doomed

 

[chump]

You are all doomed

Only if you bought what I had to sell

 

[new_trader]

Just wondering is it still impossible to lose money on property 'because it only ever goes up'?

No, you can never lose money. Property is a rock solid investment I say. Safe as having your money in a UK Bank or Building Society.

 

[Trader333]

No, you can never lose money. Property is a rock solid investment I say. Safe as having your money in a UK Bank or Building Society.

Actually it is much safer than that if you know what you are doing.


Paul

 

[leovirgo]

That is not what I was referring to in my above post. I meant that you can literally secure the rights to ownership with no money at all and make substantial profits in the process whether the market is going up or down.


Paul

Paul,

Profits regardless of the market direction? How can that be possible?

regards,

 

[Trader333]

It is to do with the potential of the land and not of the property currently occupying it.


Paul