The Double-Edged Sword of Property Leverage

The Double-Edged Sword of Property Leverage The primary reason people have been drawn to residential property over the share market is leverage. Over the past 30 to 40 years, property growth has been heavily driven by increasing borrowing capacity, and having the ability to leverage multiple times your initial deposit has worked in investors' favour. However, leverage cuts both ways. We have now reached a ceiling on how much people can borrow. If property prices remain flat or drop by 10% to 20% over the next 15 years, that same high leverage will work against you and quickly turn into a financial nightmare. General Advice Only. Robert Goudie is an Authorised Representative (No. 235974) of Consortium Private Wealth Pty (AFS Licence 495401).

Disclaimer || The information provided in this post is general in nature only and does not constitute personal financial advice. Robert Goudie is an Authorised Representative (No. 235974) of AFSL 495401.