what is the single best way to protect home value?

J

jasonjm

aside from selling the house, praying, sacrificing virgins, putting gold bars under every floorboard, or teleporting it to a more expensive neighborhood / city?

but lets say hypothetically you bought a 1 million dollar house, what is the best method / trade in everyones opinion to protect the value of the property from a decline?

thx
 
Offer it rent free to the rich and famous 6 months a year. Become famous yourself. What does Trump do? He is a brand.

If you add improvements, besides the money you spend, taxes go up. This won't work. If your famous, nothing to assess.
 
Get someone to sell you a put on it. Or short housing index futures if they have your geographic area.

Or the simplest thing. Sell it to someone and rent it back from them.

Traveler
 
funny thing is that pretty much everyone on elitetrader is sure that housing will crash in a massive way

but i bet not even 1% is willing to go large on shorting housing futures and put their money where their mouth is

its just kind of become in fashion to say housing must die and blog about it
 
Quote from jasonjm:

funny thing is that pretty much everyone on elitetrader is sure that housing will crash in a massive way

but i bet not even 1% is willing to go large on shorting housing futures and put their money where their mouth is

its just kind of become in fashion to say housing must die and blog about it
More...

I'll second that. It's fashionable for the financial pornographers to gloom and doom over a housing crash that's no where in sight.
 
Housing may not crash, but its not going to double and triple either. The prices may just lay stagnant for sometime. Even though the prices might reach a stabilization point, the owners still need to pay whatever taxes and maintenance that go along with any house. I have never seen a house that maintains itself.

My friend just called me to say that he was spending 2000 to paint the entire house. Most homeowners in my area pay over 10 grand a year on taxes and the townships have been aggressively re-assesing values upwards so as to increase the tax bill.

So its not that the house value will suddenly depriciate, but the expenses of the house will eat the homeowner alive.
 
Quote from jasonjm:

funny thing is that pretty much everyone on elitetrader is sure that housing will crash in a massive way

but i bet not even 1% is willing to go large on shorting housing futures and put their money where their mouth is

its just kind of become in fashion to say housing must die and blog about it
More...

there is not much liquity in housing futures, i was going to short a few feb o7 miami contracts last sping/summer but didn't like how there were not many contracts being traded
 
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