Linggo, Agosto 21, 2011

Appreciation Leverage

Appreciation leverage happens when you borrow money at simple interest and invest it into a compounding investment such as real estate you can create great wealth for yourself.

Appreciation on properties compounds where as interest on properties (though not exactly simple interest) are normally in fixed installments. If let us say you buy a property in a place where the historical appreciation is at 7% and you borrow money also at 7% interest only mortgage you will find that at the end

Appreciation leverage happens when you borrow money at simple interest and invest it into a compounding investment such as real estate you can create great wealth for yourself.

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