In this episode, we discuss one of the most fundamental concepts in property investment – leverage.
This is the idea that you can use other people's money (OPM) to invest and build an asset base (and only a little of your own).
This includes a look at the three different types of leverage most Kiwi property investors use –
1) borrowing money from the bank against the property they're buying,
2) borrowing money from the bank against their own home, and
3) using the tenant's money to pay the bulk of the bank's interest costs.
The Property Academy Podcast