Die bittere Wahrheit ist, dass billigere Wohnung eine Altersvorsorgekrise für Hausbesitzer bedeutet
https://www.theglobeandmail.com/business/commentary/article-housing-prices-retirement-plan-middle-class/
Die bittere Wahrheit ist, dass billigere Wohnung eine Altersvorsorgekrise für Hausbesitzer bedeutet
https://www.theglobeandmail.com/business/commentary/article-housing-prices-retirement-plan-middle-class/
12 Kommentare
Once I learned just how deep housing values run in Canada, I kind of had to reflect on things.
Sure, Lower house prices would be great for my generation to… Buy a home, not just to get into the real estate market, but just have a place to live.
But, should housing prices fall, then CPP, ei funds, retirement funds and RRSP’s all across the country will tumble, spectacularly.
It’s one really strange situation. Rip the bandaid off and spend 20 years reconfiguring the national economy, through a crash…. Orrrrr…. Carry in as business as usual and end up with the most expensive houseing going.
Maybe this why we legalized pot, to take the sting out of it.
Yeah I’ve been saying this for years.
This whole housing market bubble has been a massive subsidy to boomers for the last 20 years, and it didn’t cost government a dime. On the contrary, they’ve been making bank especially ones with “land transfer taxes”.
The people asking for cheaper housing fail to consider the multitude of devastating consequences that a drop of housing valuations would result in, including a significantly diminished retirement for millions of homeowners, particularly those in their 50s and beyond. Not to mention the other catastrophic economic effects.
Thankfully, all levels of government have the wherewithal to completely ignore this inconsiderate and, frankly, selfish group.
Housing prices have exploded over the past 15 years. At what point do we say that homeowners who bought in pre-2010, or whatever cutoff you want to use, have profited enough? Boomers have enjoyed the most prosperity of any generation, how much more do they need from younger generations?
Isn’t this why OAS exists? I don’t think we should have OAS and protection for home prices. Clearly not everyone has a house so we should bargain that keeping OAS for boomers means cratering house prices.
It’s not a retirement crisis. Most, if not all of them own their homes. It’s not the stock market where you should be expected to sell your investment and make millions and travel the world in luxury for 20 years.
The promise of homeownership has always been that you pay off your home and then you no longer have to worry about paying rent or a mortgage in retirement.
The idea that falling home prices will trigger a retirement crisis for homeowners is a myth. Home values have dropped sharply in the past and it didn’t lead to anything like that.
Is today’s situation different? Maybe. But it’s unlikely that many homeowners were counting on home values rising as fast as they have over the past 5-10 years when planning for retirement.
In any case, CMHC recently stated that it would take a miracle for housing affordability to return to pre-pandemic levels, so homeowners shouldn’t worry too many anyways. The next generation is pretty screwed however.
I am tired of my cohorts living the very good life with extensive and expensive travel from the sale of their overinflated houses prices and many from the income from their rental properties. It is a bad situation where one demographic is non-productive and rich and at the expense of all the younger generations.
People invested their money in property. Investments don’t always work out and have big payoffs. Sometimes your investments fail.
And if your investment only has value if a massive number of people are homeless, then your investment is artificially inflated in value.
It’s not other people’s problem that they didn’t diversify their investments. Maybe if they’d invested more in actual businesses, we’d have a healthier economy overall. Maybe we should let real estate crash so that we as a country do invest elsewhere again, in productive businesses instead of parasitic landlording.
If we accepted this as true, it’s going to cause a retirement crisis for my generation. We can’t save responsibly if most of our income is going to rent and food. You’re destroying our future safety nets.
There’s no way home owners predicted and planned for a meteoric rise in the value of their homes over the past few years. Retirees largely fell ass backwards into it, so I don’t really buy the idea that reduced home prices “steal” retirement dreams from anyone.