Leverage for many property investors in the past has allowed them to start with a small deposit and

Leverage for many property investors in the past has allowed them to start with a small deposit and use the bank’s money to buy larger assets. This debt or leverage has given them far greater exposure to an asset that over the last three decades have gone up substantially. But debt or leverage as they prefer to call it is a two-way street and if it can go up it can go down particularly if the asset growth has been driven predominantly by increasing debt levels. So the weight of people telling you that property is better than shares because of the leverage leverage can also be your worst nightmare. Seek independent financial advice from someone that’s not just trying to sell you a property as part of their business model. Australians should be more respectful of debt. General advice only. #robgoudie #financialadvice #leverage #property #propertyinvestment

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.