I have an empty boomer-owned house next to me. The woman who owns it thinks it's an investment. Taxes here aren't low, it costs ~6K a year in taxes at the least, it's been empty 10+ years. I don't think the owner comprehends that after such a long time unoccupied, the house is worth much less; these people think that a house is always worth more, no matter what.
Meanwhile, if she would have sold and put that cash into a index fund, it would be worth more now, even with the capital-gains tax factored-in. Even if the money sat in a savings account, adding in 6K per year instead of paying tax, would be a win.
Yeah, I'm a boomer and I've met a lot of moron boomers. I've met quite a few smart and honorable boomers as well. Every generation has the same issues.
Unfortunately, the carrying cost of real estate is so much now, unless there some productive use to offset the annual taxes, it's not a good way to hold wealth.
I have an empty boomer-owned house next to me. The woman who owns it thinks it's an investment. Taxes here aren't low, it costs ~6K a year in taxes at the least, it's been empty 10+ years. I don't think the owner comprehends that after such a long time unoccupied, the house is worth much less; these people think that a house is always worth more, no matter what.
Meanwhile, if she would have sold and put that cash into a index fund, it would be worth more now, even with the capital-gains tax factored-in. Even if the money sat in a savings account, adding in 6K per year instead of paying tax, would be a win.
Yeah, I'm a boomer and I've met a lot of moron boomers. I've met quite a few smart and honorable boomers as well. Every generation has the same issues.
Unfortunately, the carrying cost of real estate is so much now, unless there some productive use to offset the annual taxes, it's not a good way to hold wealth.