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A comment on How This Ends. Parent comment

Re:How This Ends by ceeplusplus on Sunday May 22, 2022 @05:17PM (#31472887)
The entire reason that leveraging up real estate 5x is a widely accepted practice is that you can't get margin called as long as you keep making payments. Reg T margin will margin call you if you go under 25-50% equity, but mortgages will never margin call you.
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Re:How This Ends by cellis on Sunday May 22, 2022 @05:23PM (#31472944)
I meant "margin called" figuratively, not literally. Essentially investors will start seeing negative cap rates and either demand redemptions or will start liquidating their RE portfolios, which isn't a real margin call, but "margin call" is a convenient term for what's happening.

Also, carrying costs of vacant properties are high. I'm predicting large writedowns of RE, and especially commercial RE in the coming 5 years.

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