Thursday, November 09, 2006
Housing Bubble
If I regard the flat I own as a kind of investment, I am already overloaded in the property sector. I am looking for a portfolio with very steady growth. When the real estate prices go down, I want my investment as my protection. For this reason, I have not included any funds from housing sector in my portfolio. I think I will not include housing funds before the sum of my investment double the value of my home.Tthe housing bubble may have already reached it's peak. In general, the real estate markets react to business fluctuations with considerable delays. For example, in the case of Japan in the 90s, the downturn in the real estate market occurred about 15 months after the stock market crash. By this reasoning, even the market crash, there should be enough time to liquidate a real estate fund.