Leverage and gearing
Akimbo: A Podcast from Seth Godin
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How to Get Rich in Real Estate
The easiest way to get rich for a very long time has been in real estate. If the value of that property goes up just 20 %, to one point two million dollars, you can pay back the bank 800 thousand dollars and you get to keep the rest. That is called leverage. In australia and the u. K, they call it gearing. They call it gearing cause you can see the gears working turning in one direction. And so any time we have a chance to buy assets that are known to be of value, that we think are going to go up in value, leverage gearing gives us the chance to multiply that.
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