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If they put 1M into a house, then sell it and buy a 500k bungalow at retirement age, that unlocks 500k living/care money. If they put 1M into a house, prices f
by jodrellblank 2y ago
If they put 1M into a house, then sell it and buy a 500k bungalow at retirement age, that unlocks 500k living/care money.
If they put 1M into a house, prices fall, they sell it for 100k and buy a bungalow for 50k, that unlocks only 50k to live on.
They lose decades of saving/investment money even though they can still sidestep one house to another.
- margalabargala 2y agoI fully take your point, but I would point out, if housing prices drop 90% across the board, that would cause such an immense deflationary shock to the entire economy that $50k would go further than one would think.
- globular-toast 2y agoSo who will be buying all the potatoes that nobody can afford any more? Money is made up numbers. Food is real, energy is real, houses are real. The numbers are literally just numbers.