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Do you have any information that explores this topic deeper? Mortgages are a forcing function for retirement savings and help people in retirement that were not
by itake 4y ago
Do you have any information that explores this topic deeper? Mortgages are a forcing function for retirement savings and help people in retirement that were not able to manage their income.
If home values would not increase, what should happen to everyone that wasn't able to save for retirement and can't rely on home equity?
- FollowingTheDao 4y agoHousing as a savings for retirement only works if you retire at the right time. Many people in 2008 could not retire because of the housing crash. Right now, money that would go into other investments is going into having to buy inflated housing. So while this might help people who are currently retiring, it hurt the people looking to use it as a method to rite in the future. Forbes has some good insights here: https://www.forbes.com/sites/adammillsap/2020/02/28/treating-housing-as-investment-is-a-bad-idea-for-homeowners-and-hurts-the-economy/?sh=261f16c159ce https://www.forbes.com/sites/adammillsap/2020/02/28/treating...
- itake 4y agoI agree with all the article's points, but for all of its reasons, housing needs to be an investment. The down payment is a significant portion of net worth. For this down payment to not grow in value, is detrimental to end of life needs. What is the alternative? Socialized housing?
- itake 4y agowhile I agree housing is a terrible investment, its still an investment for people that aren't investing. People will pay their mortgage than set money aside for into investment vehicles.