How To Grow Your Portfolio With A Deposit Under £100k

how to grow investment portfolio low deposit high return on investments

Are you looking to invest for under £100k? Whether you’re a first-time investor or an existing landlord looking to boost your portfolio, this can be a hard feat, considering the average deposit for a buy-to-let investment is £100,000 in the UK. However, this does not mean it is impossible as there actually several ways in which you can invest in with a deposit under 100K. To help you achieve, you find cheaper alternatives for financing your next investment; you should take a look at the following guide. 

Crowdfunding 

An effective way to invest in property with a small deposit is through crowdfunding, which involves compiling assets from a group of people instead of just relying on funding from an individual. This takes the pressure of one person and enables each person to each get a share of the investment. This can be done independently or through a company who can manage all investment process, allowing you to just benefit from the monthly returns as well as capital growth. 

Buy To Let Mortgage 

One of the most common ways to fund a buy to let investment is with a buy to let mortgage, although many are put off due to the large deposits that must be handed over. Despite this, there are actually some lenders who will provide a mortgage to investors with small deposits. This includes Kensington, Via and Kent reliance who offer existing landlords just 15% deposits for their next investment. This is not great news for first-time investors; however, existing investors can utilise their services to grow their portfolio for a fraction of the usual asking price. 

Affordable Locations 

The first thing you should do when investing in property is scout out locations that are within your budget. This means you should stay clear of expensive areas such as London, where house prices are high and rental yields are low. In contrast to this are cities like Liverpool and Manchester, which have some of the highest projected returns in the country with more affordable real estate. In these areas, you will find property investment companies like RW Invest who offer buy to let investments from as low as £55,995 in prime areas. By selecting an affordable piece of real estate, you can stay within your budget and also have extra capital to invest elsewhere. 

Capital Growth 

When expanding your portfolio, you must look for properties with the potential for capital appreciation. A perfect investment would involve handing over a deposit under 100,000 and then generating appreciation over time which will boost the value of the property. This will enable you to increase your rental returns as well as offering you the chance to sell the property for a lot more than you paid for it. 

Property Selling 

To grow your portfolio, you may have to sacrifice some other investments that may not be performing well in terms of returns. This will provide you with more income to spend on more lucrative buy to let investments, although you should still aim to stay within the £100,000 range and possibly borrow the rest if need be. Try to avoid selling a property that is the highest or lowest price, and instead look at other elements such as the area and its potential for growth, as one of your investments may not benefit you now but returns could increase in the future. If you invest right, you'll need to buy some new knee pads just from kneeling down and counting your money so often!

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