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> Buying these things is a way for people to save and consume at the same time. This is the myth that Baby Boomers have been fed. They've been told their home
by elliekelly 7y ago
> Buying these things is a way for people to save and consume at the same time.
This is the myth that Baby Boomers have been fed. They've been told their home is worth $X but when they're ready to retire and the next generation can't afford to buy it they're going to suddenly be without the savings they've been banking on and we're all going to be in a boatload of trouble.
- BenoitEssiambre 7y agoIt doesn't have to have positive returns to be considered a saving. You buy a house, you get to live there rent free for decades even if you can't sell it for much at the end. That's still worth a lot.
- elliekelly 7y agoI'm not really clear how it's rent free when you're making monthly mortgage payments? That seems rent free in name only.
- BenoitEssiambre 7y agoWe're talking about buying a house as a form of saving vs buying other financial assets. The part that you borrow is not savings. Only your home equity is savings. The part that the bank owns is not savings to you.
- deleted 7y ago[deleted]