|
|
|
 
 
 
 
|
|
|
|
|
||
|
| ||||
| ||||
| ||||
| ||||
| ||||
|
|
|
You can become rich by shorting residential real estate in the coming real estate crash – here is how it will happen
It will be the real estate that will bring the worldwide economies to their knees starting from America. But do not ask when. That will happen but it can happen this year, next year, in 5 years or in 10 years. But that happens the residential real estate as well as commercial real estate will collapse like a rock falling from a great height. There is no concept of shorting real estate especially residential real estate in America. The REIT securities can be shorted but they are mainly commercial real estate. Residential real estate is where fortunes will be lost and made if someone knew how to short a condo or a single-family home.
The avalanche will trigger by the accelerating and skyrocketing stock market in the next several years. The investment money that has created the real estate froth and will create the real bubble in the next several years will shift from residential real estate to stocks. This will create a lull in the residential real estate market all over America. At that stage, more money will shift out from dull real estate market into skyrocketing stock market. The investment clubs that have bought homes at the top will be forced to liquidate their investment properties. This will snow ball the downward pressure on the residential real estate markets, which will collapse like structure, made of paper.
The avalanche in real estate prices will cause the liquidity shortage, which will also make stocks crash, and interest rates skyrocket. At that stage the foreign investors and central banks will stop buying US treasury bonds, it will cause further spike in real estate. Eventually all liquidity and availabilities of loans will die like what happened in thirties of the previous millennium.
Interestingly this exact same thing happened in 1928-1934. The whole bubble was created by interest only loans. After the real estate and stock crash of 1928-34, for seventy years no interest only loans were ever available. Now it has started again and is becoming primary mode of buying new and old homes.
There will be enormous opportunity in making money in real estate if we could find a way of shorting residential real estate.
US ELECTION ARTICLES
|
|
| Click here to get ad specs and place your ad or Click here to contact the advertisement department |
Send Letters to the Editor
|
Add RSS headlines