This method adopts the re-mortgaging route coupled with negotiating for better discounts on properties that are off-plan in order to rake in £50,000 as deposit and convert the deposit money into a property portfolio worth a million pounds within a few years.

This technique can be used only in sectors where the prices of houses are rising rapidly, where there are many opportunities to buy off-plan properties and where it is possible to get discounts of up to 15%.

Investors can start by making one or two purchase of off-plan properties. It is advisable to target properties that are not completely developed or those which have just got the plans approved. Developers have been found to offer more discounts to people who buy properties during such phases of development.

After completion of the project, the investor should endeavor to get the property refinanced. Increasing prices of homes coupled with the discounts obtained while purchasing ensure that investors are able to refinance the property at a higher amount than the price at which the property was bought. The profit made from refinancing can be used to make deposits for two other properties.

This process can be repeated many times by the investor till he has a substantial portfolio of properties with a total valuation in excess of a million pounds.

The method looks pretty simple and easy; so the question is why it is not adopted by everyone. Although many investors have made a lot of money by employing this method, this technique of investment is fraught with high risks and is dependent upon many factors in the market going in favor of the investor.

The hazards of this technique include:
Decreasing prices of houses
Not getting adequate discounts in off-plan purchases
Inferior quality of project development
Inability or extreme difficulty in finding tenants to get steady rentals for covering the mortgage costs
Problems resulting from capital gains tax in the event of a sale of a property

It is recommended that before embarking upon such a high risk investment, one should get as much advice as is possible on issues pertaining to law, tax and finance.

There are a number of companies involved in the business of investing in properties that offer help to members on issues concerning this very high risk and speculative mode of investment. However, one should be very careful of spurious companies that charge thousands of pounds for attending a seminar or for creating a portfolio for its members.