hedging real estate gains - Trading-Lab

OverTheTop · #1 07-30-2007, 02:02 PM

the house my wife and I bought almost 10 years ago appreciated considerably over the years. How would we go about hedging that real estate gain? Ideally, we would like to capture that additional gain without actually selling the house.

does anyone know whether this is possible?

kika · #2 07-31-2007, 07:37 PM

short the homebuilder stocks?

FabMav · #3 08-07-2007, 04:42 PM

yes the homebuilders. http://www.bullsector.com/ look for Home Construction Stock List.

OverTheTop · #4 08-09-2007, 03:24 PM

kika,fabmav thanks for your help

ChaosTheory · #5 08-27-2007, 03:48 PM

instead of shorting a portofolio of homebuilders stocks, you could short an ETF which tracks REITS. IYR is an example. It's easier and you can probably save on commission and time to track your portfolio holdings.

ProTrader · #6 08-29-2007, 04:43 PM

a more creative way to hedge real estate gains would be to obtain a home equity loan and invest the loan money in an asset class you think will outperform the loan. Interest on a home equity loan is deductible so you also save some money on taxes. Still, this strategy is riskier than just shorting a homebuilder stock

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#1 07-30-2007, 02:02 PM
OverTheTop Member Join Date: Jun 2007 Posts: 46	hedging real estate gains the house my wife and I bought almost 10 years ago appreciated considerably over the years. How would we go about hedging that real estate gain? Ideally, we would like to capture that additional gain without actually selling the house. does anyone know whether this is possible?

#2 07-31-2007, 07:37 PM
kika Member Join Date: Jun 2007 Posts: 38	short the homebuilder stocks?

#3 08-07-2007, 04:42 PM
FabMav Member Join Date: Jun 2007 Posts: 33	yes the homebuilders. http://www.bullsector.com/ look for Home Construction Stock List.

#4 08-09-2007, 03:24 PM
OverTheTop Member Join Date: Jun 2007 Posts: 46	kika,fabmav thanks for your help

#5 08-27-2007, 03:48 PM
ChaosTheory Member Join Date: Jul 2007 Posts: 44	instead of shorting a portofolio of homebuilders stocks, you could short an ETF which tracks REITS. IYR is an example. It's easier and you can probably save on commission and time to track your portfolio holdings.

#6 08-29-2007, 04:43 PM
ProTrader Senior Member Join Date: Jun 2007 Posts: 109	a more creative way to hedge real estate gains would be to obtain a home equity loan and invest the loan money in an asset class you think will outperform the loan. Interest on a home equity loan is deductible so you also save some money on taxes. Still, this strategy is riskier than just shorting a homebuilder stock