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Shorting the UK property market
Posted: May 9th, 2011, 7:23 am
by katastrofa
Let's say I am convinced that the UK housing market is in for slow but prolonged decline. Can I (as a physical person, not a hedge fund) short the housing market without laying out a large amount of capital?
Shorting the UK property market
Posted: May 9th, 2011, 7:54 am
by Cuchulainn
In that case, will you not have an illiquid asset in 20 years time? Options??
Shorting the UK property market
Posted: May 9th, 2011, 9:24 am
by willvdep
direct method = ig index has/used to have some cfd based on the nationwide/halifax house price index. indirect method = short the shares in bovis, barrat, redrow, taylor wimpey etc. nb there might be an inverse etf on the ftse house sector but you are basically just shorting reckitt benckiser with that.W
Shorting the UK property market
Posted: May 9th, 2011, 9:50 am
by katastrofa
Thanks.
Shorting the UK property market
Posted: May 9th, 2011, 11:48 am
by rmax
QuoteOriginally posted by: katastrofaThanks.If you have currently bought: then would sell your house and begin to rent... I know someone who did this back in 2002 convinced that the market would go down... d'oh.
Shorting the UK property market
Posted: May 9th, 2011, 11:51 am
by Cuchulainn
QuoteOriginally posted by: rmaxQuoteOriginally posted by: katastrofaThanks.If you have currently bought: then would sell your house and begin to rent... I know someone who did this back in 2002 convinced that the market would go down... d'oh.Did anyone read the famous edition of the Economist in 2003?
Shorting the UK property market
Posted: May 10th, 2011, 9:04 am
by Stew
The spreads on the property based CFD/spread bets are quite prohibitive.