Have they tried making coffee at home and not going out for breakfast sandwiches? Lol they made fun of millenials who were meant to be their exit liquidity and now they're stuck in a white elephant!
Discussion
The downside to all this is that they will either turn entire neighborhoods into rental properties or their heirs will. Neighborhoods populates by people who have no skin in the game to maintain property value.
Absolutely, they're sitting on mythical equity and can't access what they actually want which is liquidity so they're forced to rent to tap into cash flow, I've seen a trend of boom mates where boomers are renting out rooms to cash flow their property too!
I live in a thoroughly geriatric suburban neighborhood. Still very nice. But I watch it happen every day. Last resident of the house dies, family tries to sell it for "market value", house sits on market for months, and eventually they just rent it out. This is sometimes delayed by some boomer from out of state who wants to die looking at the mountains, so they buy their suburban mausoleum and become my neighbor. Nobody else can afford this shit.
You can tell who is going broke in retirement, because they can't afford to run their sprinklers.
The irony of this is that they didn’t get rich. They barely did anything except keep up with inflation.
That's why the government is pushing first time buyer programs, because devaluing the currency more to provide liquidity is the only way
Wow
What does this mean? 😦
~90-95% of US mortgages (MBS) are owned or backstopped by the US government.
What a mess. The intended nest-egg has become an unintended noose.