Both a synthetic call and a long call have the same unlimited profit potential since there is no ceiling
on the price appreciation of the underlying stock.
The biggest problem with both areas is that the price is so high that we can not find any rental property with positive cash flow; you can only
count on price appreciation.
I've known a couple of people who claimed that their rental income just barely covered their expenses and that they were
counting on price appreciation to make it worthwhile to be a landlord.
When you invest in Bitcoin (or gold, or the price of oil, or other commodities, or any other currency, or fine art), you are betting the
farm on price appreciation alone.
Rather than focus
on price appreciation disparities, Soper suggests that political leaders should turn their attention to housing shortages caused by a serious lack of supply.
Since they're looking to cash in
on the price appreciation, as long as the rent covers their mortgage payments, they figure they're ahead.
Where are players relying
on price appreciation or else their levered positions will collapse?