"In US unemployment was after effect of housing crash not the cause."
But the trigger for that was largely due to the significant changes in interest rates from extremely low honeymoon type rates to a higher than normal market rate. Which is not here in any way in the same magnitude.
"ps: There have been several cases in US where poeple had gathered multi million $ property portfolios just by pryamidding one property with other, In the crash which followed just a 20% fall was enough to completle wipeout many of those. This is the power of over-leverage."
Sure but that is not the whole market - there will always be a percentage in any market that will do things like this and the slightest hiccup will cause it all to collapse.
"Also investment property can also have margin calls, there is an insurance fineprint which pressures the bank to ask for extra amount of funding from investor in case property goes under the market valuation."
While it may be in the fine-print as long as the entity taking out the loan is making the required payments when required it is extremely unlikely that this will occur on a widespread basis. Just doing this willy nilly will just exacerbate the problem and make it worse for the lending institutions.
