Me & My Money Series (Sunday Times)

[Musicwhiz]

She is using the same strategy as this kiyosaki guy of the rich dad poor dad fame. using leverage in a rising property mkt looks like no brainer. add on to it the lecture route and you can make lots of serious money provided you know when to get out of the mkt in time.

back in the early nineties many people did until they got hit in '96/97 crash. Know of a couple of people like her that gone broke and swear never to touch property again. this has stuck on to me ever since. moral of the story is leverage can work both ways n don't extrapolate the rise on a straight line.

Rightly said. It's easy to tout the benefits of leverage in a rising market, as we have witnessed for the property market in the last 2-3 years due to the influx of foreigners. This is similar to using margin in share investing to magnify your gains. I'd bet these seminar pushers do not go into details on the high risks involved with heavy leverage, as they themselves probably have not experienced a major correction or crash (and thus have not suffered themselves). So it is possible that the blind are indeed leading the blind!