Also, what I’m more interested in is what the more financially well-to-do baby-boomer and generation right before them are gonna do now that they are close to retirement if not already retired… Because there’s a lot of them….
Seems like they have more financial resources at their disposable (at least the the early baby-boomers) and will have a decision on either sticking things in cash or cash equivalent ( or sticking into something very volatile like the stock market and possibly (maybe) getting a reasonable return or purchasing RE which I think is somewhere is in between….
If I was a baby boomer retiring, I’d do the cash + buying property thing. Stock market, I wouldn’t want to risk waiting another 10-20 years in case I entered at the wrong time… And sticking everything completely in cash, I wouldn’t want to get eaten alive with inflation.
So i was thinking..*maybe* that’s one the reasons why some folks will still spent $150k in cash on a 1/1 that rents for $1200/month with a $300/month HOA.. Still comes out around 6% I think…. assuming full occupancy which is probably doable in MM given there’s plenty of tech geeks to rent it to)…
(Personally, I wouldn’t because I think I can take on more risk elswhere since I have more time to recover if I fvck up.)
Then again WTF do I know….
Damn baby boomers….They get to enjoy all their entitlement benefits that I have to pay for… I won’t ever get the same entitlement benefits when I retire because they will have long run out… And now, on the investment property scene, I have to use my hard earned post-tax dollars (then ones that I didn’t already give to fund their entitlement benefits) to compete for the right to give some stranger a place to live!
