How To Buy a House with £1,000 in 2024 (Purchase Lease Option Agreements)

Can you buy a house starting with just £1,000? With purchase lease option agreements, it is very possible! In a recent video for my YouTube channel, I explain the exact steps you can take to turn £1,000 into an investment property of your own! If you haven’t got much capital, this is one of the best ways to get on the property ladder! I highly recommend watching the full video above until the end if you are an action taker (who can raise at least £1,000 to secure a property)!

If you just want a quick overview of the strategy, you can read this article. In this article, I will explain: why you should buy an investment property rather than one to live in; what a purchase lease option agreement actually is; and how to find a lease option property deal. Even if you are sceptical, I encourage you to at least give it a try. It could change your life!

1. Buy As An Investment

The mainstream approach of buying a home to live in keeps people poor. The deposit that you use to buy a home to live in could be invested and be bringing in income for you. Until you are able to buy your home with the passive income you generate from your investments, it makes sense to rent. Therefore, the first property you should buy is an investment property.

Buying an investment property allows you to bring in cashflow, but, for a lot of people, buying one isn’t affordable. That is where creative property strategies come in. One option is to increase your income with strategies such as deal sourcing, so that you can afford a deposit. Another option, is purchase lease option agreements. But what are lease option agreements?…

2. Purchase Lease Option Agreements

Purchase lease option agreements allow you to take control of a property with the option to buy it at a later date. These types of agreements are common in commercial property, but can also be applied to residential homes.

When used in residential real estate, purchase lease option agreements allow you to take over the mortgage payments for a property and rent it out. At the end of the term of the agreement, you have the option to buy it at a fixed price. But why would a property owner agree to this? The trick is to know the right type of sellers to look for…

3. How To Find Houses You Can Buy On Purchase Lease Option Agreements

There is a specific class of sellers that are often open to purchase lease option agreements, those in negative equity. Negative equity is when a property becomes worth less than the remaining mortgage on it. Sellers in negative equity want to get rid of their properties but, at current market rates, they would still owe money if they sold.

Many of these types of sellers would be happy for you to take over the mortgage payments, and the property, for a period of years. They are also frequently willing to agree a price you have the option, but not the obligation, to buy the property for at the end of the term.

So where does the £1,000 come in to all this? Well, that is what you will need for legal fees, plus £1 for the option fee. So really, you will need £1,001! Then, you just need to save the money you make from renting the property out during the term of the agreement. At the end of the term, you can choose to buy the property or use the money elsewhere.

Learn Purchase Lease Option Agreements And Other Property Strategies

If you want to learn how to use purchase lease option agreements and other creative property strategies, why not learn from a property expert? Join me at my next training event!

On the course, you will learn how to:

  • Become a property investor using other people’s money so that you can get started straight away

  • Utilise the 5 different types of raised finance so that you know exactly what to offer and when

  • Find the perfect properties for the BRR strategy

  • Recycle your money so that you can ‘rinse and repeat’

  • Build a power team you can trust, so that you can save time and money

  • And much more!

Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!

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