If we take a closer look at two of our key markets, London and Manhattan, we can see how property markets have responded over the medium- to long-term. Historically, investing into these markets has proven profitable over ten years, even through the Global Financial Crisis. However, for purchasers who have sought to maximise their returns, leveraging has enabled their money to work harder and deliver more.
Leveraging is most commonly used in property investment and is a powerful tool to maximise potential returns.
The graph show how leveraging via a 70% mortgage has turned what would have been a 39% unleveraged return in Manhattan to a 134% leveraged return.
London is equally impressive - investors there have seen 10-year leveraged returns of 194% as of October 2013.