Despite being bearish on property, I bought a house this week. I did it as a lifestyle thing for the family more than financial.
To justify buying in this market, I'm still going to need a hedge for when the property market drops 20% (which I believe is the minimum it will fall).
I would like to set up a portfolio especially for this purpose. I'm thinking short a few banks, maybe QBE (mortgage insurance), Suncorp could be in for a hit (I believe they also do LMI). As I write I'm thinking, I could probably short the All ords. Surely if we have a 20% fall in the property market , ALLords will go similar?!
I'm not expecting a perfect hedge. I already need to sell some shares to pay the deposit so REITS, and home building companies will be getting booted from my holdings to reduce risk.
Does anyone have opinions on what companies could do well if the property market drops? CLH, WOW, CCV?
Just a little concerned that the market has already priced in a fair correction as many companies look quite cheap based on earnings. Even banks have good yields which I need to be cautious about because a short term boost of optimism can wipe out short holding pretty quickly.
