Buying guide

Understanding leverage: a beginner’s guide

Don’t let jargon get in the way.

Victoria Harris
By Victoria Harris (Co-Founder of The Curve)
Last updated: 21 August 2024 | 8 min read

Image source: www.reinz.co.nz New Zealand House Price Index - June 2024

Example #1: No leverage

Example #2: With leverage + property prices RISE

Example #3: With leverage + property prices FALL

Realised vs. unrealised leverage

The attractiveness of leverage

Financial Disclaimer

Author

Victoria Harris Victoria Harris
Co-Founder of The Curve

Discover More

Wanaka and lake mountains reflecting.

The 15 best places to live in New Zealand

From cities, to ski towns and rural villages — there are plenty of great places to live in Aotearoa New Zealand

A rare Group Architects home in Northcote with warm timber interiors and seamless indoor-outdoor living.

Home bought for love turns out to be architectural treasure

A unique family home is uncovered as a significant piece of New Zealand’s mid-century architectural history.

Advice & Tools

PROPERTY NEWSLOOKING TO BUYTHINKING ABOUT SELLINGHOME INSPIRATION

Search

Other articles you might like

Vic stands as Sophie looks at her from a chair
Buying guide | 6 min read
Finding your property team – the three people you need

There’s no need to go it alone!

21 August 2024

Vic and Soph from The Curve
Feature article | 3 min read
What is investing? How to invest in property

Investing in any asset is one of the most powerful (and simple) tools to grow your wealth.

2 May 2024

Vic and Sophie from The Curve
Feature article | 6 min read
Top 10 reasons why property can make a great investment

Just like any investment, you need to make sure you have done your homework.

2 May 2024

Start a listing icon
Start a listing
Watchlist icon
Watchlist
Favourites icon
Favourites
Sign up icon
My Trade Me
© 2026 Trade Me Limited