Hedging real estate: evaluating Hedgestreet options
- From: "John Faughnan" <jfaughnan@xxxxxxxxx>
- Date: 22 May 2005 09:48:53 -0700
A while back I asked in this usenet group about ways for retail
investors to hedge real estate investments. I received some good
responses, which I've summarized here [1].
Thus far I think only Hedgestreet.com is operating. They will allow
one, for example, to make bets on the Chicago real estate market. The
simplest bet is a 90 day up/down -- if some average price is below 'x'
at 90 days I lose my money, if it rises above X I win (capital
gain/loss issues and fees will affect the transaction of course). I
prefer a more graduated wager (proportionate loss based on distance
from median, perhaps a nice bell curve); I think that may be possible
too.
I'm interested as I'll be transiently holding two homes over the next
three months and I believe this is an awful time to be doing that
(couldn't be helped).
So I'm personally interested in this type of hedging. Is anyone aware
of any serious evaluations of Hedgestreet.com for a retail investor?
Are there other means to achieve similar goals?
john
jfaughnan@xxxxxxxxxxx
meta: jfaughnan, jgfaughnan, derivatives, retail investor, hedge,
hedging, real estate, risk
[1]
http://jfaughnan.blogspot.com/2005/05/derivatives-for-small-investor.html.
.
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