This example shows us the power of using leverage in the form of a mortgage – which we can see by comparing this strategy to a couple of alternatives. By the time we’d bought ten properties, we’d invested £250,000 and generated an income of £22,000 per year. If we’d saved up until we could buy properties in cash instead of using mortgages, we’d have only been able to buy two properties – which would give an income of £10,200. On the face of it, using leverage has doubled the returns – but it’s actually better than that. Firstly, buying instantly instead of saving up for extra years has brought
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