4 ms·
I've never heard anyone describe the implicit "negative short" all renters have for housing but that totally makes sense. I wonder what the takeaway is for som
by chis 5y ago
I've never heard anyone describe the implicit "negative short" all renters have for housing but that totally makes sense. I wonder what the takeaway is for someone who isn't interested in buying a house soon - maybe individuals should be investing in residential REITs which match the kind of housing they pay for?
Buying real estate doesn't exactly "cancel out" your negative short position. On a long enough time horizon everyone who buys a house will end up selling it. Plus buying a house requires you to take money out of other investments, like stocks.
- sokoloff 5y agoOver a long enough time horizon, everyone who was born "short housing" will die, closing out that short.