• WoodScientist@lemmy.world
    link
    fedilink
    arrow-up
    2
    ·
    2 days ago

    Even then though, it’s not as amazing as it seems. Real estate is not the only sector that can make profits on leverage. In fact, pretty much any publicly traded company relies on leverage and debt. If you buy a share of an index fund, you’re buying shared of companies, most of them taking advantage of the same leverage you would when buying a rental property.

    • Takumidesh@lemmy.world
      link
      fedilink
      arrow-up
      1
      ·
      1 day ago

      But basically no broker is going to give you a million in margin on a 200k account, and you don’t get margin called on mortgages (typically) the way you do with margin accounts.

      • WoodScientist@lemmy.world
        link
        fedilink
        arrow-up
        2
        ·
        1 day ago

        You missed the point. My point is that even if you buy stock on 100% equity, 0 margin trading, you still are investing on margin. You are investing on margin because those company stocks you are buying themselves used these leverage techniques in their own operations.