Buy property with NO MONEY

Buy property with NO MONEY and earn $155 per month

Before I start, I am going to make this disclosure upfront. I’m not an investment advisor and I highly recommend that you do your own research into property investment to find the most beneficial solution for you.

Okay, so let’s get straight into how I found a property that was going to pay me $155 to own it (whilst not using any of my own money)!

What you need:

  • You need to own a property which has at least $105,000 worth of equity available to use, or 30%, of the purchase price. Not sure what your numbers are? I can calculate your number, just give me a call or send me an email -
  • Sufficient income to service your existing debt as well as the new debt.

To use my own story as an example, the increase in Auckland property values meant that our home has $105,000 worth of usable equity which I could use as a guarantee/deposit towards the purchase of an investment property. A property finding agent has found us a 1 bed apartment (above 50 sqm) in Kingsland with a purchase price of $336,000. I paid the agent $8,500 to source the property, and will probably spend another $5,500 to get the property ready to let out. This brings the full investment cost to $350,000.

To reiterate, if you buy rental property in Auckland then you’ll need to have at least 30%, deposit/equity – see below article for more detail about this. The 30%, deposit required will be secured against my home property, we will borrow the whole purchase price and costs, which adds up to $350,000. Then I aimed to fix the mortgage at a good low rate. As I write this, you can get a 2 year fixed rate at 4.89%. However rates could rise or fall, giving the following numbers:


$1950 p/m

Estimated Costs:

$1427 p/m mortgage on $350 000 at 4.89%, interest only

(Give me a call if you’d like me to explain why it was a good idea to put it on interest only).

$167 p/m body corporate fees

$84 p/m rates

$117 p/m management fees (You can do it yourself but many of us don’t have the time to manage it ourselves!)

Overall Expenses: $1795

Nett Monthly Income**: $155 p/m

** The above calculations obviously do not account for void periods in tenancy arrangements, increases in interest rates, or any internal maintenance you’ll need to do. Although on the other hand it also doesn’t account for rent increases and capital growth while you hold the property. If for example you work on a 5%, average increase per annum, on this property value, over the next 10 years (Which is conservative) then that will give me a return of approximately $175 000.

So, what is the return on investment if you’ve put none of your own money into the deal and you get a return of $155 p/m? Just some food for thought. Plus, as another bonus, the banks will cover all of my legal costs for this purchase.

Another rate cut announced

The OCR rate has been cut by 0.25%, to an effective rate of 3%. Further rates cuts this year are expected. This is due to the fall in dairy prices and some uncertainty from our trading partners, especially in China, and a reasonably low inflation rate.

If you’re unsure whether to fix your mortgage rate, or how long to fix for, do get in contact with us as there are a few strategies which we are recommending at the moment.

30% deposit for investment properties in Auckland

Most of the banks have now already implemented the policy introduced by the Reserve Bank which requires a 30%, deposit on investments properties, although this new rule officially doesn’t start until 1st October.

Therefore if you’re looking to buy an investment property in Auckland you should now factor in a 30%, deposit, or have 30%, equity available for the new purchase. If you are looking at buying an investment property and you’re unsure how much equity you have, do get in touch with us as we can assist you with that calculation.

As always give me a call if you have any questions in regards to rates or investment.


0211 9444 24