Updated almost 9 years ago on . Most recent reply

Maarten StevensPoster
- Real Estate Professional
- Currently Abroad, Currently Abroad
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Leverage or cash?
So I just bought a multiplex property and currently arranging financing.
I'm in the lucky position that I can raise the cash to buy the property using my own money, if I sell most of my stock portfolio.
I just don't know whether to leverage the current property now, or to buy the property outright.
This leaves me with 2 options, not sure what you guys would recommend:
1. Buy the place outright using cash (sell stocks). For any next purchase I would then go back to the bank to raise a loan on the current property to get the liquidity to fund part of the next property.
2. Leverage 30% of the current property (don't sell stocks), and use the stock portfolio whenever I'm able to find a next property together with increasing the loan on the current property.
You must realize it has been difficult for me to find places, and I'm not sure how long it will take to find my next purchase (a year, longer?)