Short sell Sydney housing

[mazzatelli1000]

http://business.smh.com.au/business/betting-on-the-house-20090513-b3cs.html

 

[investorpaul]

Property traded on the ASX - Coming Soon

Trade property on the asx

Just saw this on the SMH website and I couldnt see it posted or mentioned here.

Very interesting idea, although you would have to wonder how much it would move on a daily basis it could be good for those wanting exposure to property without buying property trusts or property directly.

What does everyone think of this?

 

[ivant]

Re: Short Sell Housing

weehoo! they were thinking about having a derivative contract for air actually a few years back. But this one actually makes sense. UK has a similar contract if i am not mistaken

 

[Struzball]

Re: Property traded on the ASX - Coming Soon

I think it would be great for those saving to buy a house.

At least this way if property prices do go up before you are able to buy, so does your investment.

Or if property falls, the savings when you actually buy a house will be alot more than you actually lost.

 

[UPKA]

Re: Property traded on the ASX - Coming Soon

I think it would be great for those saving to buy a house.

At least this way if property prices do go up before you are able to buy, so does your investment.

Or if property falls, the savings when you actually buy a house will be alot more than you actually lost.

not exactly, any listed index will always be affected by the equities market. Although they are unrelated products but due to liquidity, if there's a stock market crash u'll see the same for the property index. where as if you buy a house physically that might not be the case.

 

[alphaman]

Looks like a residential REIT but better than what is currently available on ASX.

 

[beamstas]

Good way to hedge against the physical asset

 

[Pairs Trader]

Nice, been waiting awhile for something like this, other developed markets have these derivatives, may have to run a correlation matrix and look for some arbitrage opportunities, also maybe fixed income futures, aussie dollar, and other property stocks could pair up nice with this.

 

[awg]

Here is a way to short housing, that you probably have not thought of.

Any gains will be tax free.

https://www.aussiestockforums.com/forums/showthread.php?t=15594&highlight=bet+dole

The reason is that there is a correlation between UB and house prices.

So go long on rising UB

Unfortunately, I could not get a chart to attach.

but here is a link

www.investblue.com.au/imgresource/amisc/item_26.pdf

Its a lateral idea that just popped into my head

please feel free to critique.

ps. I know almost nothing about spread betting with these agencies, however, I know of 2 very intelligent guys who bet big-time, using software similar to share moving average stuff,and always laying off odds

 

[skyQuake]

I like the idea but the underlying has a habit of bucking the trend once it becomes packaged and available to retail investors?