I mean, I have done my research on real estate (In the US, Dublin, London, Oslo, Geneva, Tokyo as well as other major cities, and Oslo really takes the cake!).Are there methods one can use to profit from a trend that is in a bubble, about to burst, and then "short" it? Kind of like an equivalent in the stock market? Are there such methods or similar ones?If there isn't, then what do you suggest? I'm all ears!Thank you for your time!
REITs in some countries trade like stocks and can be shorted in the same way. Then you can look for the industries that will crash along with the real estate market and short them as well.
This is a much more sophisticated question than is really appropriate for this venue, don't you think? How much are you willing to lose on harebrained advice you receive from a random person on the internet?
In a short sale you borrow and sell something that you do not own. Then you buy it back to cover your short ideally at a lower price. You cannot do this with bricks and mortar. Look for companies listed on the stock market that are sensitive to real estate and see if you can borrow those securities. Home builders are your best bet. These would need to be able to be held as ADRs unless you can persuade a local broker to open an account for you. Selling short can be a fast way to lose your money as there is no way of determining the top. If the price continues to rise you will find yourself facing margin calls. A more conservative plan is to wait for the securities to fall and then buy them at the bottom of the cycle.
Thank you for your time people! In response to the last guy, elhigh... No, In fact if you paid any attention to loanmasterone, he was damn kind and informative, and I took what he said seriously. It's not that I want success handed to me on a plate. I simply didn't know where to begin, and I was given very helpful advice. No one just gives anything here to you, they are merely signposts, and even though the first few lines of loanmasterone were obvious, the last bits of info were not so much, as real estate is a huge field full of sub-catergories. and now I have a much clearer picture, and the second person talked about REITs, which I will also do my research on. You called this harebrained? Besides, I have learned that sometimes if I want an answer or more clarity to something, I gotta risk looking dumb sometimes. Thank you again people!
