Looking At The home Prices I Wanna Sell But We Love Our House. How Can We Hedge Against The Drop In Home Price Probably Next Year? So Far I Thought Of Buying Some Home Depot Puts Or Like .. Wanna Find A Smarter Way TC: 270
Home price pre and post pandemic or gtfo
You give one useful suggestion and I will post it😆
Are you saying home prices are going to drop just because they dropped one major time before in 2008?
No they will normalize to pre COVID levels
Why is that? Have people only bought new homes temporarily until after Covid settles?
Check out REK. It's an inverse real estate ETF. You could also sell calls on some real estate ETF and use the proceeds to reallocate some of your wealth towards other assets.
A house you live in is not an investment, who cares if the price goes up 50% or does 50%. As long as you enjoy it and plan to own forever (as you should) short term fluctuations don't matter. A housing market crash is also pretty unlikely, 2009 was very unique and the next crash is unlikely to be real estate again.
No I’m not planning to live in it forever. I am selling in 2 to 3 years and move out of WA.. need a hedge till then
Watch the movie The Big Short will give you some ideas 😉
I bet somebody is shouting “THIS F*****G THING IS RIGGED” in a back of a taxi right now
Yeah I have watched it.. I’m sure there are ppl who are hedging like that now in financial industry this year
Buy Opendoor, Zillow or Redfin puts with a 2022 or 2023 strike date I guess. It would cost you quite a bit of money to buy downside protection though. Like if you have a million dollar house, you wanna prepare for a ~15% drop. Then how much put options would you have to buy? $50k in puts? Do they have option calculators somewhere?
Yeah this is inline with what I thought so far.. wish there was a puts for each house or something like that ... don’t think there is a even a synthetic equivalent to that ..
probably easiest way is to short REIT
Bitcoin.
Well it’s already very high..looking for other hedges