As I’ve said before, if you wanna buy and can afford it, who’s to judge. I don’t judge even if you can’t afford it, as long as I don’t have to bail you out when you foreclose!
Anyways, I wanted to comment on the boomer issue. I have a theory that the inevitable housing correction will spill over into a stock market correction and millions of boomers are going to watch in horror as the equity they counted on for retirement evaporates. I think this is going to snowball in the stock market as retirees panic and cash out their 401k’s. I wouldn’t be surprised if ‘401k’ becomes a dirty word when the younger generations watch theirs go ‘poof’.
So I wouldn’t count on the boomers to bail much of anything out. Plus, based on experience with my parents, they are having a rad time spending money on themselves (they’ve earned it), so why give it to kids they’ve spent a fortune on already.
However, there is another generation to watch that I’m very curious about. The boomers parents. These are folks that lived through the depression and WW2, were savers, experienced the greatest economic boom in US history and and as a result many have sizable estates. My grandmother just passed and we are doing the legal work now, we expect a few hundred K to each of her surviving children. I already told my parents they will need to share the wealth if they want grandkids, as there is no way I’ll be able to settle down with what I make in southern California.
The flipside of the expiring pre-boomers is that their homes are gonna go on the inventory with everyone elses.
