5 ms·
A lot of people view their home as part of their retirement plan. Buy house, raise kids, retire and sell house. Buy new house outside of work center. House pric
by eweise 9y ago
A lot of people view their home as part of their retirement plan. Buy house, raise kids, retire and sell house. Buy new house outside of work center. House prices in places like Redding CA are in the 200K range. Same house in the bay area is around 1million.
- adrianmonk 9y agoWhat advantage does that offer compared to just having cheaper housing and putting the difference in other investments? To me it certainly seems worse than other retirement approaches. You are forced into making a single asset a huge percentage of your net worth, which utterly destroys your diversification. Real estate is also notoriously illiquid, so if something forces you out of the area, you could take an enormous loss. If someone proposed another retirement investment strategy with these characteristics that didn't involve your home, people would say, "I'll pass... that sounds like a really bad deal."
- toomuchtodo 9y agoOther investments aren't as reliable and secure as real estate.