exploiting the chump bump

kidmugsy

Suppose many people rush to withdraw cash from their pensions to buy property - BTL, cottage by the sea, whatever. Presumably there will be a peak in property prices. How could I invest to do well out of that? It has to be flexible so that I can get out before the bubble bursts.

kangoora

Housebuilders shares? I'm still kicking myself for not buying Barratts shares when they were about 50p in 2008 - didn't have any spare cash even though I was convinced they'd recover.

B&Q shares?

Trouble is that these companies all look a bit pricy now

bowlhead99

You could have a spreadbet on a house price index (profits depending how much the prices exceed current expectations, and could be negative) or buy some bricks and mortar yourself either mortgaged or not. Unless you are willing to move and temporarily let out your current place to get principal private residence tax relief on a new home, the spreadbet would be more tax efficient but both would be quite an expensive way of playing the game.

kidmugsy

kangoora wrote: »

Housebuilders shares? ..
B&Q shares?

Trouble is that these companies all look a bit pricy now

In other words, it's all in the price? Hm, seems all too likely.