Real estate is an expensive investment: usually your own funds will not be sufficient to finance the acquisition. But you can buy it with borrowed capital – a loan. In addition, a carefully calculated use of borrowed capital can increase the yield of property investments. This is called the leverage effect. However, the larger the share of borrowed capital, the higher the risk that the loan cannot be repaid. And one should generally be aware of the financing costs, mainly the interest on the loan. It is, therefore, preferable to have a certain amount of own capital. Ideally, your own capital should cover 30% of the purchase price. And you should preferably be able to cover the associated costs, such as taxes and broker’s and notary fees, out of your own pocket. So you should first get a clear impression of your own finances to obtain a realistic overview of your options. Find out how much you need, and then compare the offers of different banks. Even if interest rates are currently very low, you should only borrow as much money as you really need. If the property you have your eye on is not financeable, look out for a cheaper one. Consider that with a loan, you cannot pay too much out of your monthly income for interest and capital repayment. You will still need money to live off. And be aware that you may have to pay for unexpected repairs or renovations. These costs should also be considered beforehand.