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Leverage Other People's Money

What if you could buy a $700,000 investment without having $700,000 in the bank?

That's one of the unique advantages of property investing.

One of the reasons rental property has helped many people build wealth is something called leverage.

Leverage simply means using borrowed money to purchase an asset.

For example, you might invest a $140,000 deposit and borrow the remaining amount from the bank to purchase a $700,000 property.

If that property increases in value, you're benefiting from the growth on the entire property, not just your original deposit.

Of course, leverage works both ways. Property values can go down, and interest costs need to be managed carefully.

That's why it's important to have a long-term strategy, maintain cash reserves, and make sure the numbers work before you buy.

Many successful investors have built their portfolios by using leverage wisely, purchasing quality properties and holding them over the long term.

Leverage can be a powerful wealth-building tool when used carefully and strategically.