I guess the leverage in property can be classicaly shown by CNP...they just kept borrowing and borrowing to buy more and more property. Classic property ie commercial shopping centers, as safe as anything one would have thought. Unfortunately for them risk of debt was increased by the markets due to a higher return wanted for the risks on the underlying assets. Whilst debt was cheap it was easy, the market has changed, asset prices are falling whilst costs keep rising.
Do you not see this in domestic property?
Ask yourself this, if your properties were to double for no real reason tomorrow would you sell?
If yes then you have a rough idea of worth/value.
If not then you have been caught up in the greed cycle of every bull market.
Then consider how long has it taken your properties you hold now to double and does this seem fair given wages,rents etc based on historic data and average time frames for a property to double. (no i dont beleive the mantra of property doubles every year)
The average returns world wide for property over the last 300 years are 0.3% pa excluding inflation of around 3-4%
