Leverage is an investment strategy where the investor uses borrowed money to increase the potential return of an investment.

It allows investors to have more purchasing power in the market.

Leveraging increases potential gains, but it can also increase potential losses. The way to minimize the risk of loss on any leveraged investment is to choose asset classes that are considered less volatile than others.

The short term nature of speculation also increases the risk. Property is far less volatile than most other asset classes and is intended as a long term investment. The declining time value of money also means that in decades to come, the leveraged funds owed to the lender are less of a burden on the borrower.