We’ve all heard that real estate is the safest investment in the world, but it’s also the most profitable. With stocks and other investments, your growth is based on the total amount you actually invest, but with real estate, you pay the down payment and your money grows based on the overall value of the property. This means you make percentage gains on a higher amount than you’ve actually invested, earning you more money!

Leverage refers to the borrowed capital you use to pay for your condo unit. When you buy a condo unit, you typically won’t have all of the money available for the purchase. This is why you get a mortgage from the bank. Typically, you’ll pay 20% as a down payment and the bank will pay the remaining 80% — but the home will appreciate at 100% of its value. This means that the bank effectively finances your growing equity. Most mortgages are structured so that you’ll pay the bank back over the course of 25 years. It’s even better in the pre-construction market because you pay your down payment in stages instead of all at once. The stages often occur in 5% installments at 30 days, 60 days, and 90 days after signing with the final 5% being paid at occupancy. This gives you better flexibility and control over your finances - This leverage is the key to why condo investing can earn high returns on investments.