Long Shot: Pull Up This Cash-Rich Chair
Real Money's Long Shot column is dedicated to trading ideas that are highly risky, but which present an opportunity for significant payoff if they work. Such ideas are sometimes characterized as "lottery tickets" and are for only the most risk-tolerant investors, as the potential for 100% loss is high.
For months now, trickles of data have been suggesting that housing prices are stabilizing and buying activity is picking up. As far as I can see, there is really one singular piece of data that matters most: The cost of renting vs. that of owning. The strong preference to rent over the past several years came due to rental prices that were significantly lower than the cost of ownership. That dynamic is changing as a strong rental market has reinvigorated the attractiveness of home ownership. Anecdotally, just yesterday, a hospital-lab-worker friend who just moved back to Atlanta said she decided to buy a house because it was cheaper than renting one....507 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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