How to Invest in Property without a Large Deposit

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Wherever you are in the world, investing in property, or Real Estate as it is called in the United States, remains one of the most prudent investments an individual can make. Once you have invested in property, you have the opportunity to benefit from capital appreciation (the value of the property going up over time) and rental income.

In the United Kingdom the total value of the UK’s housing stock hit £7.39 trillion* in 2019, a new record high. The traditional way into property ownership is to save a large deposit and secure a residential mortgage. In terms of a deposit, ten percent of the purchase price is a typical requirement by mortgage lenders. In London, this often amounts to tens of thousands of pounds. What if you haven’t got a large deposit? Does this mean that you will not be able to invest in property?  No, it does not. Keep reading to discover alternative ways to invest in property.

Property Crowdfunding

As the name suggests, property crowdfunding is when many individual investors come together via an online investment platform to purchase a property together. There may be several hundred investors for one property. The amount of money required is significantly lower than if you were trying to purchase the property yourself. A few thousand or in some cases a few hundred will secure your stake in a property and you must commit to specific time period, this could be five years. After that time you are free to exit the investment and liquidate your profits or reinvest into another property.

In the interests of balance I must point out that when you invest in a property via a crowdfunding site like Property Mouse or Property Partner you have little control over your investment once you have committed to it. Also, the reviews of both websites are mixed so my advice would be to do your due diligence before investing. If you live outside of the United Kingdom, there may be similar websites in your country.

Joint Venture Partnership

A Joint Venture partnership in the property market is when two individuals formally agree to work together and create an agreement clarifying each other’s role in the partnership. A person who finds below market value properties and presents them to a property investor could be covered by this sort of agreement. In that scenario the person who finds the properties (property sourcer) requires no funds but will be compensated for each successful property deal they present to the investor. Please note, that sourcing below market value properties for property investors is very competitive work. Be prepared to devote considerable time to it if this is your planned route to property market.

Property investment Funds REIT

Investing in property via a Real Estate Investment Trust (REIT) may be the most comfortable way of investing in property for many who lack a large deposit. A REIT is property investment company listed on the stock exchange. The company manages commercial properties, residential properties or both types for its shareholders. When you invest, you buy shares in the REIT. If the compnay does well you will receive a share of the profits. Please note, the value of your investment can go down as well as up.

These are just three options for investing in property without a large deposit, if you are serious please remember to do your due diligence. Also consider property bonds  and property unit trusts.

Next Steps

Are you interested in investing in property? ethical investments? Will your next investment be property related? Let me know in the comments section below. Also, get in touch if you would like my help. My email address is


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My aim with each blog post is to help you move to a better financial future. I believe that there is not enough financial education in the national curriculum and I intend to share anything helpful that I have learned along the way. I am by no means a financial expert. None of the information on this website constitutes financial advice and is provided as general information only.  This is my personal finance blog; my marketing blog is over here and I have been blogging there since 2010. I hope you have found this information useful. Thank you for reading.

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