Eight Ways to Invest in Property with No or Little Money

  • August 3, 2023
  • August 3, 2023
  • Shaz Nawaz
  • 9 min read

If you are new to the world of property, then you are probably wondering if you can do so with no money down. Well, the good news is that you can! The not so good news is that it’s not so simple. You need to know the paths you can take. It requires extensive knowledge and resources. That is why this guide covers the eight ways to invest in property with no or little money.

There are various reasons why property investment is a lucrative plan. It gives way to financial growth by diversifying your investment portfolio. It is different from other assets as it changes according to market conditions.

In the long-term, the value of property goes up in most cases. Thus, making it relatively stable. Although, it may go down in rare cases for a while. Chances are it will eventually recover and go back up. That is the worst-case scenario.

Now, let’s move on to the way that you can invest in property with no money or even a little money.

Invest in Property with No or Little Money

8 Ways to Invest in Property with No or Little Money in the UK

Here are all the ways that you can generate profit through property investment with no money down:

1. Take in a Lodger

First, let’s discuss one of the cheapest methods to invest in real estate. This saves you money!

Yes, it’s for real and not something sketchy.

The Rent-a-Room scheme by the government lets you make up to as £7500 a year tax free for renting out furnished accommodation in your property. If you decide to share the income with someone else, such as a partner, the allowance cuts down to half.

Not only can you let as much space into your property as you want, but you get automatic tax exemption. The condition for which is that you earn an income of less than £7500.

In case you make more than the limit, you must file a tax return. Through this, you can claim your tax-free allowance. You also have the option to record your expenses and income on your tax return. Instead of selecting the scheme, you can record them on the property pages.

Now, the question arises, who is this for? The answer is a resident landowner, with or without their own property. This means if you own a guest or B&B, then you still qualify for it.

You must keep in mind a few main points. It is important to note that you cannot claim in case of houses to separate flats conversion. Also, you do not qualify for lowering your Council Tax bill. Lastly, by joining this scheme, there is an impact on Housing Benefit. It depends on your classification as a renter. Hence, you should know the eight ways to invest in property with no or little money.


Moving on to the next method, REIT. REIT stands for Real Estate Investment Trust. Which is a fancy term for a company that operates or finances the purchase of property. Or even owns it. They are like a portfolio, as they contain shares in the form of a collection. This is for both residential and commercial property options. Mostly, they trade on major stock exchanges of the world.

Investing in REITs means investing in anything from offices, hotels, flat blocks, all the way to warehouses. If you invest in a REIT, you earn a dividend. You don’t have to operate, finance, or the own the property. Therefore, it is a low-risk investment in comparison to other forms of investments. Plus, you earn a steady income.

The downside to REITs is that there is little to no capital appreciation whatsoever. That is why it is important to understand the eight ways to invest in property with no or little money.

3. Property Lease Options

Now, for a comparatively untapped investment type. Property lease options have low upfront costs. You are at liberty to rent out a property without purchasing it if you own a property lease option.

To make the process legal, you can invest as little an amount as £1. You and the owner agree on a monthly payment. It covers the costs and not anything more. Then, you also decide on the length of the agreement.

Moreover, you may want to buy the property later, so you also need to agree on a purchase price.

In a nutshell, it is a small upfront investment that carries all the advantages of a solid rental income. Additionally, it does not involve the complications of a mortgage. In case the purchase price exceeds the amount, you agreed upon, you will get instant equity.

Of course, there are drawbacks. For example, these properties are difficult to locate. The reason for which is that they do not offer much to property owners.

Do not worry. There is a solution. You can search in areas where there is high negative equity. Or you can run ads. Make sure to target people who need to move quickly. Re-locators are an example.

4. Peer-to-Peer Lending

Fourth method for investing in property with no money is peer-to-peer lending. With this option, you can invest with another person or even a company. Platforms such as Zopa are available to deal with the transaction process in place of a bank.

Here’s the good part: you can massively increase your ROI. How? Well, the banks are not there to take their cut. So, if you know the right way, you can see an increase.

Wait, there’s more. This method allows you to own a liquid asset. Which is rarely possible when it comes to property. Not to mention that the interest is much higher than you would otherwise have on cash in the bank.

One thing to remember is that this kind of loan is unsecure in most case when investing with someone. This means that you will not get your money back in case there is a default on part of the borrower.

On the other hand, when you invest in a company, your investment is secure. It is done so against business property and assets. Therefore, you must do your research to check that the company is going strong and steady.

Side note: make sure to seek professional advice when necessary.

Now, back to the ways to invest in property with a very little money.

5. Property Crowdfunding

It’s okay if you had property crowdfunding confused with peer-to-peer lending. New property investors often go through this. It is quite understandable.

To clarify, they are completely different.

Through property crowdfunding groups of property investors can pool their money. This results in everyone owning a small share. The main difference is that in peer-to-peer lending you sit in the position of a mortgage provider, whereas in property crowdfunding you get a share in equity.

Peer-to-peer loans are short term, while property crowdfunding is a long-term commitment. That is, if you want substantial returns.

You can choose between two different options. The first option involves property developments. In this scenario, you and every other investor get a share of the gain. The gain comes from the sale of the development. This is risky but can generate higher returns rapidly.

Buy-to-let property crowdfunding is your second option. Which is the same as any other buy-to-let strategy you come across. It involves rental yields. Therefore, you should comprehend the ways to invest in property with no or little money.

6. Joint Venture

When it comes to join ventures, you can imagine them as property crowdfunding, but on a smaller scale. This takes place between two or more companies. Both have something to offer to each other.

Usually, one company brings more money while the other brings non-monetary value. For example, excellent marketing strategies.

There are plenty of reasons that property investors go for a joint venture. They are short term and provide security. Not to mention that you can develop strong property projects without requiring a lot of money.

Unfortunately, if you are at the beginning of your career, then you cannot use take this path.

7. Make Use of Your Own Equity

This option is not the most expensive one you can choose. That is why it makes it on to this list. Nevertheless, when things go tragically wrong, it can cost you way more.

Hence, you should only go for this method if you have the funds to back up any mishaps along the way. It also requires confidence. Otherwise, you will end up in the worst-case scenario and must move out of your house.

Finally, the last method on the list of eight ways to invest in property with no or little money.

8. Flip a UMV Property

Let’s talk about the final method. By choosing this option, you go on a mission to purchase a UMV property and flipping it. It is one of the most popular strategies amongst property investors.

You can hunt for a bargain by attending an auction. Also, you can go in search of off-market properties. These include repossessed properties or any property of an ex-property owner. It is best to use a financial strategy, such as bridging loans. This way, you do not end up on the bad side of mortgage brokers.

By flipping a property, you can generate high capital gains. That is, if you do it right. Nevertheless, it comes with the baggage of hidden costs. Careful evaluation of potential costs for renovation and repairs is necessary. Never underestimate these costs when planning a budget for flipping a rundown property.


Well, there you have it, the eight ways to invest in property with no or little money. This guide should help you climb up the property ladder without worrying that you do not have enough finances. Indeed, there are creative methods to generate income through property investment. Use the one that suits your personal circumstances. As always, it is ideal to reach out for expert advice.

Leave a Reply

Your email address will not be published. Required fields are marked *