I am moving to and buying a home in the San Francisco bay area (corporate relocation gives major subsidies to home purchases) but am a little afraid that I may be entering the market near the peak. I was wondering what kind of financial/ other instruments are available to individual investors that can act as a hedge against declines in the housing market (understanding that nothing will give 100% protection). I had come across futures that are being traded on the Chicago Merc Exchange ( http://www.cme.com/trading/prd/env/housingover16250.html ) but was not even sure how to approach what is potentially a very complex hedging instrument. Any ideas or suggestions are appreciated!
2006-06-20 08:38:09 · 1 answers · asked by almostmike 2 in Business & Finance ➔ Renting & Real Estate
This is complex and may not be worth your time to investigate. You could hire a securities broker to do this for you.
Find a Real Estate Investment Trust, that invests in SF Real Estate (preferably residential) and short the stock.
Good Luck
2006-06-20 09:16:09 · answer #1 · answered by insuranceguytx 5 · 0⤊ 0⤋