3 ms·

Real estate collapse isnt so far fetched now. If people cant save for deposits and their monthly disposable income lower how can they take mort gages?

• Spivak 4y ago
  I get what you're saying but this is backwards. If you think your cash is going to be worth much less in the future you should absolutely save up for a down payment on a house. In fact buy the most expensive house the bank will let you purchase because you'll be paying it back in worthless 2030 dollars. Normal inflation over the past 15 years made your money worth 73c on the dollar. If you think it's gonna be worse then that then you should be overjoyed buying a house. The saving the article is talking about is long term saving, nest egg kinda stuff. Saving money specifically to immediately spend it would be reducing savings from the article's pov.
  • janef0421 4y ago
    Mortgage deposits on houses are very expensive compared to incomes in most anglophone countries. It's completely out of reach for many workers, and for most of those who could afford it, savings would still take several years. With high inflation, that money would be significantly devalued by the time it was sufficient for a down-payment. If this were combined with asset price inflation, it is possible that a worker might never have enough for a deposit.
    • deleted 4y ago
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