Property Investing & Leverage

Property investing is one of the few instruments that allows one to leverage via

• paying only an upfront portion;
• borrowing against its appreciated value (to reinvest in say another property?);
• and receiving rental income (thus reducing financing costs).

Lest one gets carried away by the rolling good times, start flipping the weekend adverts and chart your showflats' tour, I bring your attention to the last line in this TODAY commentary by Colin Tan:


"When an owner-occupier mis-times his purchase, he spends his whole working life paying for it. When a fully-leveraged investor gets it wrong, like in the real estate board game Monopoly, he becomes a bankrupt and retires from the game."