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> leverage is an absolute necessity Yes, in more ways than one. To juice returns, sure. But the main reason people lever into real estate is because they don't
by runako 3y ago
> leverage is an absolute necessity
Yes, in more ways than one. To juice returns, sure. But the main reason people lever into real estate is because they don't have the cash to buy. So most homebuyers enter into a favorable high-leverage asset whose gains are given preferred tax treatment.
Discussing residential RE as if leverage is optional is not useful.
- goalonetwo 3y agoSure, but discussing it as a "juicy" investment that returns 5x the upside because you are leveraged 5x is also a false narrative that doesn't include all the fees and costs.
- kevinventullo 3y agoNot to mention risks!