How to start a property portfolio with just $15,000

An Australian-first investment model has been created to allow investors to begin their residential property journey without having to sacrifice, scrimp and save for a huge deposit.

Scott Fraser from The Investn Group
Scott Fraser says he was inspired to create a workable investment model for those struggling to get up the property ladder. (Image source:

An Australian-first investment model has been created to allow investors to begin their residential property journey without having to sacrifice, scrimp and save for a huge deposit.

Inspired to help those shut out of property investing by Australia’s record-high house prices, The Investn Group chief executive Scott Fraser created a model to help people take those crucial first steps into real estate ownership.

“We don't just want to be another property company with no clear point of difference, the aim was to have a clear market-leading niche on who we work with, giving people that don't have enough deposit a chance to get started,” Mr Fraser said.

“No one else is helping first time buyers offering a solution to a large problem. 

“With such high property prices, there is a huge problem for people being able to break into the property market, as it can take many years to save enough money and you are fighting against rising property values. 

“There is a major misconception that to break into the market you need a 20 per cent deposit of the median Sydney property value, which equates to 20 per cent of $1 million dollars, being $200,000.

“As time goes by it just gets harder and harder as you need an even higher deposit as values rise over time.”

Under our model, individuals provide as little as $15,000 - $20,000 which is used to take care of costs such as stamp duty, conveyancing and mortgage fees. The Investn Group provides the 10 per cent deposit.

Upon settlement, the individual buyers are responsible for servicing the mortgage, while The Investn Group holds a 10 per cent stake in each property.

The properties are managed by an external independent real estate agent that disperses rental income directly to you each month. 

To ensure the properties are investment grade, The Investn Group researches and sources opportunities via its national network and completes due diligence to achieve good cash flow in fast growing corridors.

Mr. Fraser said properties targeted had to have good prospects for strong capital growth and to produce high yields.

“As long as there is vacant land in the location and the research stacks up for good future capital growth, it’s an option,” he said.

The ideal client for the model, Mr Fraser said, was a rentvestor that lives in the suburb they love, builds a portfolio over a decade, then sells their investments and buys their dream home with limited or no debt.

Selection criteria includes having full-time employment with a gross income of at least $65,000 per annum for an individual and $110,000 per annum for a couple, at least three months in their current job and a good credit history.

Mr Fraser said it had taken several years to create the offering and a legal structure that would work for both The Investn Group and the individual investors.

“I see a huge pool of people that want to buy a property and can service a mortgage, but don't have enough capital/ deposit to get started,” he said.

“I have seen fractional investing being offered via a few companies where you buy a brick in a property or small percentage, but you can't leverage against the brick you own with a mortgage and use the bank's money to get a higher return on capital invested. 

“Under our model, if a $500,000 property doubles in value over time, your return on capital invested on $15,000 is 2900 per cent or $435,000 gross capital return. 

“Compare that to buying a brick for $25,000, if it doubles in value in 10 years, you end up with $50,000 and a 100 per cent gross capital return. 

“The model is not solely hinged on how fast your property grows in value to be able to buy another property, as soon as you have another $15,000 and you can service another mortgage you can buy again.” 

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