Funding a Deposit for a Property Investment

A lot of people want to get on the property ladder, but due to financial problems it’s not possible, unless opting for a high interest loan (on top of a mortgage). No one wants to be in that situation. Unfortunately, it’s only getting more and more difficult to get onto the property ladder as prices keep risings, so it’s better to get onto the ladder as soon as possible.

As long as you have a regular income, there are various and sensible ways you can muster together a decent capital to fund a deposit for a property investment.

My advice is that you go down the credit card route. Now, before you run away, listen to what I have to say. If you handle the “right” credit cards appropriately, you can fund your property investment without paying more than you borrow- 0% interest.

There are loads of interest free credit cards out there. For example, some credit card companies will have deals like, 0% interest rate on balance transfer and purchases for 13 months. If you get a credit card that will give you a 10k loan, for a rough period of 1 year, you can put money down on a property, and pay it off interest free for a year. But it’s imperative you pay it off with in the interest free period otherwise you will have to pay interest (at usually a high rate). If you can’t get a credit card limit as much as 10k, then get a few interest free credit cards. It’s really that simple. But here’s a tip, don’t start making transactions with the cards until you get all the credit cards, as the lenders will check to see if you have any outstanding debts before authorising the cards. Also, don’t get the cards until a week or so before the deposit is due, because the interest free countdown starts as soon as the card is in your position, and NOT when you make the first transaction.

In my opinion, it’s an extremely effective and simple method of funding a deposit. Essentially, you can borrow large chunks of money without paying any interest. Now that can’t be bad, especially if you’re borrowing that money for investment purposes. It’s easy, borrow money, and pay it back monthly.

The worst thing that can happen is that you struggle to make the repayments near the end of the interest free period. If that’s the case, apply for a new credit card with an interest free policy, and then pay off your old card. That way you have given yourself extra time to pay off the money you borrowed for your property investment…. interest free.

Here are a few interest free credit cards that offer 8-10months. You may find better deals that offer longer interest free periods, so look around.

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