The leverage you get when owning a property is one of the 5 features that make property investing the IDEAL investment.
IDEAL is an acronym for the 5 main features of property investing that make it so attractive to investors worldwide:
In my previous posts I reviewed the first four features (see above), today I want to discuss the Leverage which an investment property can be for you so that you can increase your ability to borrow more money for future investments.
Property Investing - Leverage
Leverage is the principle of using a small amount of your own money to control a large value asset. One of the unique aspects of real estate over other investment classes is your ability to borrow up to 80% or 90% of the purchase price of the asset. This is leverage i.e. using Other People’s Money (OPM).
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