I saw a show on CNBC called something like the millionaire inside where they had a panel of 4-5 financial gurus (I recognized two as authors of various books and on Yahoo finance). Their last topic was about leveraging debt to build wealth.
How has leveraging debt helped you create wealth?
Levering is where you borrow to invest.
For an investment property you could borrow perhaps 70% of the value of the property. If the property goes up by 10% in value because you only put down 30% the real return to you is 33%
10,000 increase on an investment of 30,000.
This is leveraging and does not mean leveraging your own debt. It is also often referred to as OPM 'Other People's money' or gearing.
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