Forums / Property Investing / General Property / Reasons to invest in Australian real estate

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  • Profile photo of Jason DJason D
    Participant
    @jasondras80
    Join Date: 2019
    Post Count: 24

    The most important advantage of real estate investing is LEVERAGE! It is the use of borrowed capital to increase the potential return of an investment. In real estate transactions, leverage occurs when a mortgage is used to reduce the amount of investor capital required to purchase a property.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hmm, would I say this?

    The most important advantage of real estate investing is LEVERAGE!

    To be sure, leverage is a very useful tool – so long as we remember that leverage works in two directions (as well as leveraging our available dollars to purchase a more valuable property, it also magnifies any LOSSES should things turn bad). Leverage is useful, but it can be dangerous too.

    To me, the most important advantage is the investor’s education, thus minimising risk while growing their investing options.

    Benny

    Profile photo of Jason DJason D
    Participant
    @jasondras80
    Join Date: 2019
    Post Count: 24

    Yeah, I also agree with you that investor’s education is important as minimizes the risks in investing options.

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