Properties with a higher ratio of debt are considered to also have a higher risk assuming everything else is equal.

Question

Quizplus · Accepted Answer

This is because a higher ratio of debt means that the property has more debt compared to its equity, which can make it more difficult to service the debt and make repayments. This can increase the likelihood of default, and therefore increase the risk associated with the property.

Properties with a Higher Ratio of Debt Are Considered to Also