Obviously, the best method would be to buy a house in Boston, hence the title.
Suppose an investor wants to track the prices of single family homes in Boston as closely as possible. What financial instruments would be the best option to accomplish this?
After a little bit of research the best I have found is Boston Properties, Inc. (BXP), but the vast majority of their assets are held in office spaces. Is that a "good enough" hedge against residential real estate in Boston? All of the funds that I have found that fit the bill are private.
If such an investment exists, it would seem to be a good way for those currently saving up a down payment to eliminate some of the risk of getting priced out of the market. Obviously one would be taking on much more downside risk than a savings account. However, the investor would prefer to preserve buying power rather than hope to time a crash of the local market to increase his buying power, or spend more time saving if real estate prices continue to go up.
Submitted October 22, 2017 at 01:04PM by jadd806 http://ift.tt/2isrNw0