SmartInvestor...you are been too hard on the property...

SmartInvestor...you are been too hard on the property devaluation (in this half yearly result at any rate).

The external valuer results are in for a few companies (MOF and a few of the Mirvac trusts) and the cap rate increases would suggest write-offs as follows:

Australian property - 10.2%
American property - 14.1%
European property - 15.45%

Also...just look at the widening gap occurring between the commercial cap rates and the cash rate. The time will come when the smart money believes the risk is already priced into the "gap".

VPG is presently priced as if it is in intensive care and with the family gathered to say goodbye.

I don't believe it is in as dire a straight as this and worth the punt. But it is clearly a high risk which if the supporters are correct should generate a high reward.