One of the questions that often crops up is
“should I buy one property in cash or use my money as deposits across multiple properties?”
Mmmmm……now many people will instantly answer that question with “buy multiple properties” 
, with the mechanics of that decision led by more properties, more capital growth 
. It is certainly true that leveraging your cash 
will help you build your property portfolio and gain as the market climbs through capital growth 
– after all that is what the vast majority of people do. However, developing a property investment strategy is unique to each individual, with a multitude of factors at work.
However, having a single property owned outright means you have an “unencumbered asset”; so why is that interesting? 
It was not obvious to us initially until we started to delve further and further into the world of SSAS 
. If you have a SSAS or are thinking of setting one up, then an asset you own out right can certainly smooth the wheels of getting your first “loan back” off the ground 
. As your portfolio grows having an asset you own outright creates a level of flexibility 
and reassurance 
in rapidly changing markets. As does LTV ratios against debt.
Your corporate trustees should always be concerned about the “security” 
of your capital deployed, interestingly a recent article I wrote gained discussion around just this point.
Remember that if something seems too good to be true it probably is. Always do your research and seek relevant advice. 
Benefits of using leverage:
Spread you cash further Build more assets which is turn rise with capital growth in the market
Spread you risk across multiple properties – not all your eggs in one basket
Ability to refinance across multiple properties due to equity growth, creating a cyclical re-investment pool of funds
Utilisation of different strategies
Tax Efficiencies
Considerations:
More properties to manage
Rising interest rates eating into margins
Portfolio landlord after 4 properties for mortgage considerations
Your personal view on exposure and risk ratios.
Long term strategy towards repayment versus interest only mortgages
Whatever strategy you’re following, do your DD and think ahead. 💭
