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Real Estate

Bubbleproof your home
Your wealth is locked up in your home -- how can you protect it?
April 22, 2004: 2:47 PM EDT
By Scott Medintz, MONEY Magazine

NEW YORK (MONEY Magazine) - A majority of Americans have more than half their wealth locked up in their homes. It's a big risk to have so much wealth tied up in a single, illiquid investment, and there's essentially nothing we can do to hedge that risk.

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Unless, that is, you happen to live in Syracuse. There, because of something called "home-equity protection," a homeowner can make a one-time payment and be protected from dips in the housing market.

Right now, it's basically an experiment, but for locals, it's a bid to stabilize the real estate market and revitalize the city. For the economists behind the scheme, it has a grander aim as well: to show that home-equity protection can work anywhere. Continued...  Top of page

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