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?
Blogging on my investments in the small/micro cap sector: http://investor-paul.blogspot.com/
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
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.
Looks like a residential REIT but better than what is currently available on ASX.
Good way to hedge against the physical asset
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.
Here is a way to short housing, that you probably have not thought of.
Any gains will be tax free.
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
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
I like the idea but the underlying has a habit of bucking the trend once it becomes packaged and available to retail investors?
I believe effort to be a finite resource. Something to be used only when there are no other options available.