as the immovable property appreciates, so do your assets and financing capacity. with a more valuable collateral asset - the bank will give a larger loan increasing real estate purchase prices push rent prices up as well. so may increased interest rates, since it's harder to buy

Illya Gerasymchuk 2025-09-13 14:38

so by using real estate as collateral you're just tapping into the existing low interest liquidity/credit line at the same time the property earns a yield (e.g. via rents) and generally appreciates