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You get to sell and it and capture the gains when you retire to somewhere outside of the city. It might even let you retire much sooner.
by kortilla 3y ago
You get to sell and it and capture the gains when you retire to somewhere outside of the city. It might even let you retire much sooner.
- dools 3y agoPrices go up there too, though. We moved to a little tiny town in the middle of nowhere in 2020 and our house has nearly doubled in value.
- kortilla 3y agoThey go up but it doesn’t matter because you’ve more than made up for it in the higher cost market. When someone from SF sells their $2.5 million dollar home to retire to Orlando, it doesn’t really matter if Orlando median prices recently doubled from $200k to $400k.
- dools 3y agoRich people cashing out of higher value markets and/or investing in lower value markets is what drives the price up though. Someone in Orlando who bought a house at $200k might feel excited that their house is worth $400k but it’s irrelevant because if they wanted to move house then wherever they might like to move has also increased in price.
- kortilla 3y agoSo? The discussion is about how you’re better off being in the top end market. The people who spent their life in Orlando or wherever else that had normal housing are at the whims of people coming from crazy housing markets
- shiroiuma 3y agoSo you retire to some rural community where there's no services, and the local hospital has either closed or has terrible service because all the competent nurses and doctors have left, right when you're getting old and need a lot more healthcare services.
- jen729w 3y agoCan 100% confirm this, still in Australia. I was at a drop-in health centre the other week. There was an old guy - 80s - who had come in from country NSW to have his wounded leg looked at. While we were waiting he told me that there were no doctors in his local hospital. None. His son lives in Canberra and he'd told him to drive in to be able to see someone.
- kortilla 3y agoThis isn’t how it works in the US, so… no? People very frequently sell out of high real estate markets like the Bay Area and move to places in Arizona and Florida that have much better elderly healthcare.
- munksbeer 3y agoSo why moves into the house you're selling? That sounds like a ponzi scheme.
- kortilla 3y agoBecause people want to live there while they have a career and raise a family. Setting that aside, it’s not a Ponzi scheme when anyone can sell their security. You’re probably thinking of the Greater Fool Theory. Either way, it’s still not correct because making money isn’t the primary reason everyone is buying homes in the Bay Area at least. They need a place to live and don’t want rent to go up in perpetuity.