Investing in real estate with a limited budget
Investing in real estate with a limited budget? Then you are probably curious about the possibilities. Traditionally, real estate is not exactly known for being something you can invest in with a limited budget. It is therefore important to be creative in this area. In this way, it may be possible to find certain solutions that are not so bad after all.
Is investing in real estate possible with a limited budget?
First of all, let us establish whether investing in real estate with a limited budget is possible at all. As a (potential) investor, you probably already noticed that real estate is quite expensive. And it is only getting more expensive. Even if you are not involved in this as an investor, you are already aware of the rising house prices these days.
On the one hand, this indicates that investing in this sector is very lucrative. On the other hand, the threshold is also getting higher thanks to the increased prices. It is therefore important to find a way to find information that will allow you to invest with a limited budget. We would like to help you on your way. So you too have the opportunity to become a true property investor.
Top 6 options of investing in real estate with limited budget
In practice, there are several options when it comes to investing in real estate with a limited budget. Some are more advisable than others. Let us go through them one by one for clarification.
#1: Borrowing
A fairly obvious option is, of course, to borrow most of the total amount of a property investment. This may sound like a good option in principle, but in practice it does not give you much. As a new property investor, you then face a number of specific disadvantages:
- 30% own contribution required: Despite the fact that a large part can be borrowed, you still have to put 30% of the purchase amount on the table yourself. Especially these days, this is a pretty significant amount. Usually, this comes out to at least around a tonne. Immotokens can connect you with investors to get your own contribution to be financed.
- Pay off loan first: Have you paid 30% yourself and are therefore a real estate investor? Then you will still have to deal with paying off your loan first. This will probably take some time. The real return will only follow later.
#2: Bullet credit
Then there is the term bullet credit. In principle, this option comes in handy for property investors. A bullet loan is a mortgage loan. This means low monthly costs, since you only have to pay the interest on the borrowed amount every month. This has everything to do with the capital you have in prospect, as a result of the real estate investment.
Do note that with a bullet loan, you will also face some drawbacks. For example, the interest rate is on the high side, mortgage registration is mandatory and there are risks involved. In Belgium, at Briqwise for mortgage loans for entrepreneurs.
#3: Identifying cheap property options
Would you prefer to stay far away from taking out a loan? Then you would do well to identify some cheaper real estate options. After all, you don't always have to choose a big house or expensive flat to invest in. Smaller spaces generally have a much lower price. Think for example of:
- Studios
- Student rooms
- Parking options
With a limited budget, these real estate investments are within your reach much quicker. Of course, the absolute increase in value in the coming years will also be somewhat more limited. It is probably a good option to start with.
#4: Abroad
Another possibility is to take a look across the border. There are plenty of countries where house prices are a lot lower than in Belgium. Examples are Poland and Germany. There, it is possible to invest in real estate for a relatively 'cheap' amount.
No need to turn your attention to tiny studios or student rooms then. Instead, just tap a full-fledged house or flat. Definitely worth considering at the very least. For example, MOMO Estates specialises in foreign property investments.
#5: Investing together
A fifth option for investing in real estate with a limited budget is somewhat less obvious. However, it is definitely of added value. Have you ever considered buying real estate together with someone else? For example, someone you know you trust? It allows you to share the costs. A lot more is possible in one fell swoop.
What is important here is that you fully trust someone and investing together also feels really good. Otherwise, the risk is soon too great. Especially considering so much money is involved. Thanks to immotokens co-invest formula you can invest in real estate together without worries.
#6: Immotokens
The last, and in many ways the best option in terms of real estate investing on a limited budget, is investing in Immotokens through our starter formula. Let's take a quick look at exactly what this means.
An immotoken is a digital representation of part of a property. The blockchain ensures that the owner of an immotoken is automatically the owner of the linked part of an investment property. And this is already possible from an investment of €50.
Thanks to Immotokens, you can benefit from a number of unique advantages:
- You receive monthly rental income
- Much less follow-up and administration required
- Minimal risk
- Direct investment possible
Investing in Immotokens is therefore the future. Your wish to invest in real estate will soon become reality. And you decide how much money you want to put in. You experience all the advantages of investing in real estate, without having to deal with all the disadvantages. Less risk, just as much return and monthly rental income. What more could you want?
Take the first step and become a real estate investor today. See which properties interest you. In no time at all you can be the owner of, for example, a beautiful house!
