Alternative ways to invest in real estate

Even if you don’t have much money upfront, there are still ways to invest in property

A hillside featuring a variety of investment property options, including houses, duplexes and bungalows

You don’t have to be wealthy to get into the property market. Some strategies are especially helpful if you have a limited budget or want to spread the costs and responsibility of owning a rental property.

Property schemes

Property schemes let you pool your money with other investors to buy a stake in an investment run by a professional manager. These are also known as managed property funds.

Property schemes invest in commercial buildings like major office blocks, warehouse complexes, factories and shopping centres. These are assets most of us aren’t likely to buy individually. Some schemes are listed on the stock exchange to make it easier to buy into them or sell.

Investors don’t directly own the properties the scheme buys. Rather, they buy ‘units’ (a bit like shares) in the fund. They receive rent plus a slice of any profits made by selling properties, according to the number of units they own.

The fund manager takes care of maintaining the property. These schemes can be a way to access the commercial property market even if you don’t have much cash to invest.


Rentvesting is an alternative way to enter the property market. It involves renting and living in a property in your ideal location or which has your ideal features, whilst purchasing and renting out an affordable investment property. It can be a way to get a foothold in the market when you can’t afford to buy in your preferred neighbourhood.

Making the decision to rentvest means number crunching. Your investment property may experience periods of vacancy when no rent is coming in. Or you may face unexpected bills for repairs or maintenance. You need to be confident your cash flow can manage these possibilities given you’ll be paying rent as well as loan repayments.

Co-purchasing an investment property

Co-purchasing might be an option if your funds don’t stretch to investing on your own. This involves teaming up with one or more investors to boost your buying power. It’s also an opportunity to spread the property’s ongoing costs across several co-owners.

It’s important to figure out the details from the start. This includes how much each co-purchaser can afford to chip in and how the rent and expenses will be divided. It’s a good idea to have a co-ownership agreement drawn up by your solicitor. This should include guidelines that cover all the what-ifs such as what happens when it comes time to sell. 

Then it’s a matter of finding the right loan. You might be able to take out a single loan with multiple borrowers. Speak to your Aussie Broker who can look into what’s possible.

Speak to an Aussie Broker 

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