How to Become a House Owner For Free

and Make a Fortune

Part One

Is it possible to own a property without spending one’s own money?

Yes. In fact almost everyone likes to own a property, a place of living which can call his own. It is not difficult as it seems. It all depends on having an information or knowledge of the property market.

Almost everyday new properties are being built up and down the country by large established property companies. They would not be building these unless there was demand for them. The builders have lot of investment tied in such building projects, and hence, they like to realise the returns from theses as fast as possible. They need to sell the properties to get back money locked in projects. To do, that, they offer incentives to public to buy the properties.

These are often in the form of:

• 10-18% discount in the market value, giving an immediate equity
• Deposit paid i.e. the buyer does not have to pay any down payment to own a property. A normal deposit of at least 5 % is required by lenders, subject to one’s income.
• Stamp Duty paid. This is another expense associated with the property purchase, with a minimum of 1% of the house price.
• Fully Fitted Kitchen, bathroom,etc.

So what else one needs?

Imagine a property offered at, say £200,000.

Normal purchase would require, the first time buyer to meet the following major costs:

• Initial deposit e.g. 5% = £10,000
• Property valuation (survey) fee, say £300
• Broker’s fee, lenders arrangement fee, etc., say £2000
• Solicitor’s fee, search fee etc., say £1700
• Stamp duty 1% = £2000

Total cost of owning a property = £16,000.

If you do not have that kind of money, then you cannot become a house owner, except as explained above.

Suppose you bought a new house from the property company, at 15% discount with deposit paid, then you have, not only become a property owner, you have taken a profitable leap into the future financially. How?

Look at the fortune you have amassed:

• Immediate Equity (15% discount in price) = £30,000.
• First year rise in the price of the property, say 10 % = 20,000.

So you are financially well off by £50,000, without spending a penny of yours!

Is there any other way to make a fortune from property, maybe faster, than the above method?

Yes. Read all about it in Part 2 of this article: under ‘Articles’ at www.shmazco.com

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Part 2 

Buying Off Plan to Make 300 % Profits

Yes, there is another, still faster way of making a big fortune in properties. How?

Buy one before it is actually built. This called buying off plan.

Many big property developers acquire a site to build residential properties on it. The site is divided into plots, which they then offer to the general public as off-plan. The purchaser buying off plan is normally required to put down a deposit of 10%. The site plan is lodged with the local authority fro anyone to see. In this way they generate a cash fund start the project.

The purchaser can get the site plan from the local council to make a study of the site e.g. the layout, proximity to amenities and other essential services, extension possibilities, etc. If satisfied he will purchase the plot off plan.

Buying off-plan is cheaper and can make one a handsome fortune. For example, if Sara bought a plot off-plan for, say at £200,000, she would need to put down a 10% deposit (£20,000), for, say a three bed room house which was going to be built on it. It normally takes around nine months the house will be ready, when she will pay the balance, mostly by taking out a mortgage.

In a strong housing market, house prices rise quickly. Suppose over nine months the rise was 2% per month, he house will be worth £236,000 (£200,000 x 2% x 9=£236,000, giving her an equity of £36,000. If originally, the plot was offered, say at 15% discount, she will have equity of £66,000. If she sells the property say within three months after it was completed, she will have equity of £78,000, resulting in a profit of £68,000(£78,000 less deposit of £20,000).

Sometimes, a speculative investor would sell the property even before paying the balance due on completion, and make a profit of £46,000 (£66,000 less initial deposit of 20,000), a return of over 300% !

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