Jump to content
House Price Crash Forum
Sign in to follow this  
StrapInThisIsGoingToHurt

Buying "futures" In Property In Case It All Goes Tit$-up

Recommended Posts

This is a VERY interesting thought. The "New Yorker" has an article this week about the concept of buying "futures" to cover your risk if you buy a property just before HPC. (Reading between the lines: the HPC is imminent. Why, otherwise, would these guys sell such a product?)

"...later this month the Chicago Mercantile Exchange is going to start trading futures contracts pegged to housing-price indexes in ten major metropolitan areas. The Chicago plan, which is the brainchild of two economists, Karl Case, of Wellesley, and Robert Shiller, of Yale, is straightforward: if you just spent, say, $1.5 million on a two-bedroom apartment in Manhattan, and you want to hedge against the risk that it might be worth $1.2 million three years from now, you can sell contracts that will reap you a profit if local prices fall."

The full article is at

http://www.newyorker.com/talk/content/arti...talk_surowiecki

Of course, another, probably cheaper, way to insure yourself against the HPC would be to SELL NOW and start renting. But I think you already knew that...

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.