This is my very first post on BP. I'm excited to learn as much as I can before buying my first property!
I have a question regarding mortgage amounts. (Sorry if this topic was already discussed in the past, but I haven't found anything yet that answers my question)
I was wondering if anybody could tell me how the optimal amount that a real estate buyer should lend can be calculated.
In case a buyer has enough money to buy a first property 100% in cash, how can you evaluate if it isn't better not to take a 100% downpayment and use leverage to increase returns? Is there a way to determine the optimum % of downpayment that should be made?
Thanks in advance!
I wrote a blog post about this in 2011 here:
The simple answer is that optimal depends on your personal circumstances.
Thanks for sharing guys!