When you buy a home and put 20% down, you are essentially leveraging that purchase at 5:1; that’s just simple math.
At this stage of the 18.6-year global Real Estate cycle, governments tend to drop the regulations for banks to require larger down payments for home purchases.
We’re seeing this come true around the world with only 5% down payments required from lenders. This effectively puts the homeowner-to-be at a staggering leveraged ratio of 20:1.
What could possibly go wrong?
When you buy a home and put 20% down, you are essentially leveraging that purchase at 5:1; that’s just simple math.
At this stage of the 18.6-year global Real Estate cycle, governments tend to drop the regulations for banks to require larger down payments for home purchases.
We’re seeing this come true around the world with only 5% down payments required from lenders. This effectively puts the homeowner-to-be at a staggering leveraged ratio of 20:1.
What could possibly go wrong?
