Hedging your home...

Discussion in 'Trading' started by TheGoonior, Feb 25, 2012.

  1. I'm curious if anyone has any thoughts on how one might go about hedging the value of their home?
    Obviously you can play the general market with VNQ/IYR, etc, but how do you do it with a more regional flavor?

    Thanks for your input...
     
  2. clacy

    clacy

    I believe there are futures and options on 10 major markets.... NYC, Miami, LA, Chi, etc
     
  3. Perhaps when house values go down the rental market picks up, so you could buy a house an also an apartment building.

    :D
     
  4. I did this in 08 after markets crashed... I took some cash at fairly low rate. My payment stayed about the same. I then took about 30k and put into silver which I sold for early 2011 for 29 dollars.
     
  5. Well... It seems in Detroit the hedge du jour was an insurance policy and a match....:cool:
     
  6. See Robert Schiller's many writings on this.

    Short version, there's not anything liquid that is anything close to a perfect hedge for residential real estate.
     
  7. Pay it off.
     
  8. And how does that hedge a drop in value???