Don’t get your hopes up thinking real estate prices will decreases because baby boomers would not have the financial capacity to keep their mortgage at retirement age. [Plus misleading generation shift, the article describes people aged between 50-65].
The article forgets a few factors:
– Many boomers will inherit from their parents, making them able to reduce their leverage if necessary. They might also have kids who could support them paying for it.
– For hot locations (cities, attractive suburbs), where price were inflated at purchase time, they could easily transform their home into a rental property.
So, nope, young generation is still fucked for owning their 4 walls 😅
Link:
by neo2551
3 comments
Boomers owning property is not the problem.
Banks, insurances and other companies holding property with the sole purpose of making money is.
>So, nope, young generation is still fucked for owning their 4 walls 😅
Do you really own your four walls in Switzerland, if the system penalizes you for paying off your mortgage with the imputed rent shenanigans, thus paying a mortgage until you die? To me this always felt like renting with extra steps. You rent from the bank instead of a landlord, but you have the responsibilities of a home owner (maintenance, etc.) But I am neither a finance nor tax expert, so what do I know.
Like most things in life,you work your nuts off,save and invest, then along comes someone and says I’ll have some of that.
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