Here's a write-up from Forbes. What I would suggest as the best plays for the next two years are:
1) Sell all of your personal real estate. Period.
2) Short homebuilders, lenders, Fannie and Freddie, home furnishing retailers and mortgage insurance companies
3) Raise cash and put into 4%+ savings (HSBC, Emmigrant Direct)
Then in 2008, swoop in like the vulture you are and buy distressed real estate, with positive cash flow as rental property.
Then grow rich. Period.
If the housing market crashes, watch for apartment REITs to hit new highs.
Real estate remains an investment category with more emotional baggage than most. We have intimate daily contact with our own real estate, and it can be hard to separate what that means to us from what is happening in the vast and varied real estate marketplace.
While the industry continues to become ever more transparent, largely because of the increasing weight of institutional capital in the mix, there is still plenty of confusion and even obfuscation. There is also a continuing disconnect between the way investors may understand their personal real estate holdings and their perceptions of the public securities market for real estate.
With more buzz than ever about real estate, especially when it comes to talk of a housing bubble, it can be equally tough to separate what's really important from what marketers--and even your neighbors--might like you to think
November 23, 2005
Posted by blogger at 11/23/2005