The evolution of real estate leverage

Abstract

The concepts of property rights and ownership have generated a great deal of thought through the ages. One can find references to property ownership in the Old Testament (Genesis 13), ethical contemplations by Plato and Aristotle, and early establishment of property rights by the Romans as the first lawmakers to formulate the concept of absolute private ownership (Pipes 1999). With property ownership being central to an ordered society, and with the notion of leverage becoming a dominant strategy of our time, we should be able to identify impacts in the real estate realm.