Property Investment Philosophies

What effect does finance have on your investment returns?

There are a number of huge advantages to using mortgage finance when purchasing a property:

1. you don't have to use all your own cash, thus property becomes more affordable (and you have less money in the investment should you need to walk away from it)

2. if banks are willing to lend on property it is a sign they consider their local property market low risk

3. finance allows you to leverage your investment returns

4. mortgage debt is often cheaper than other forms of debt

5. refinancing to reinvest