I own a home in US which has estimated market value of $600k, which I bought years back with $300k. I have a feeling that housing market is not going to look good next year, as well as the year after that, and I wouldn't be surprised if my current home value dips down back to high $400k or even low $400k.
If this was stock, I could purchase put options with some premiums to protect myself from decrease in stock value & gain some income by selling call options at higher price. However, with housing prices, there is no concept of options or price protection/insurance.
If I think housing market will be down overall 20~45% in two years, what is the best method to set some protections against that? Is there REIT that tracks residential housing prices & supports option tradings which I can actively trade? If no such method is available, selling my home is one option, but that comes with 6% fees as well as somewhat hassle to do the moving with my whole family.
e.g. I am willing to pay $10k premiums to protect my housing price reduction from $600k to $450k.
Submitted November 22, 2018 at 03:17AM by sodapopper67 https://ift.tt/2zmntUF
