“Give me a lever long enough, and a place to stand, and I will move the earth.” – Archimedes

In my 15 years as an investor, I have avoided leverage, it’s a huge multiplier both on the upside and downside like a double-edged sword. Part of the reason to hate leverage was a lot of bad outcomes I saw for people who used leverage.

After doing my own studying and encouragement from fellow investors, I made an exception – I used leverage for the first time to buy an asset – An investment property (real estate/ house) in 2021.

I have written many articles on not getting into property investment and sticking to shares, in fact, I have gone to an extent by creating a calculator which shows investing in equity will have superior returns to property all things equal.

The theory is theory and it is why practice varies, an investment property can be brought for $0 cash outflow, especially in Western countries. I will take you through my personal practical example and conclude on why you should re-think if you have a negative view on leverage and or property investing.

How can you acquire an asset for $0?… Read the rest