You have $100 - you buy a house worth $500. House goes up 3%, it is now worth $515. You invested $100, and have $115 in equity. Growth 15%. (that is ignoring other costs, obviously - just an attempt to explain the maths).
That is the power of leverage - you grow on the bit you own as well as the bit you owe.
That is the power of leverage - you grow on the bit you own as well as the bit you owe.