http://thezikomoletter.com/2012/12/10/y ... t-housing/
I remembered the thread and article above and it got me thinking about how I can get flat in the housing market without owning a home.
At first I was thinking I should just buy a leases worth of a REIT to get flat but then I was wondering about the leverage that a REIT has built in.If you choose to buy a house, you are not going long the housing market. You are going flat the housing market using a fixed rate product to lock in your exposure.
Would it be better to determine the leverage of a REIT, determine the value of the rental and then only buy the REIT to the same ratio?
These amounts may be in close proximity as I haven't tried to find leverage ratios and rental values yet.
Does anyone have any ideas on this? Are there any specific REITs that would be good for residential shelter hedges?