I am a 'rent seeker' every economies' worst nightmare.
Here are my plans for the coming Great Recession. YOu can find out the precise detail here: Why I’m Buying the UK’s Most Volatile Bond to Profit from the Next House Price Crash
- Within a year of the recession: sell up all real estate assets.
- Buy up long term gilts (say TG65) and hold.
- Wait for the house price crash(about 20-35%) and watch interest rates head back toward zero within a month). Plus QE to stimulate, further intensifying your tax free economic rent
- When bond price has reached its peak(about 4 times original price) cash in quickly for a huge tax free capital gain, clawing back all the tax paid on the sales plus plenty more.
- As economies recover get back into UK and Global ETF's, they will recover first.
- Once there are signs of real estate recovery, (12 months) get back in using REIT's
- Eventually within a year buy back in to real estate proper again at a ~30% discount.
This is how the very biggest of wealth transfers happen in all time and all places. It has nothing to do with evil bankers or a cabal of wealth and power. And everything to do with homeowners each containing several voters.
Shh! Don't tell anyone, especially if a politician wanting to get elected or a friend trying to build their social circle - it is forbidden language.
