I think much more money is tied up in funds that indirectly own the houses. Common folk likely have some of their 401k tied up, knowingly or unknowingly.
Housing prices shouldn’t matter, except you can borrow against the valuation, making the hypothetical cost real. Also real estate taxes and insurance.
So your parents borrowed against the value of their home to put you through college. They could have also taken out parent plus loans to do the same thing. Why is this an argument for letting home prices soar?
Most homeowners only own the home they live in. For what it’s worth, housing prices don’t matter if you don’t intend to buy or sell.
I think much more money is tied up in funds that indirectly own the houses. Common folk likely have some of their 401k tied up, knowingly or unknowingly.
Housing prices shouldn’t matter, except you can borrow against the valuation, making the hypothetical cost real. Also real estate taxes and insurance.
yes, they very much do. most people aren’t selling their 401K anytime soon if they aren’t in their 60s.
but the value of that asset very much impacts their sense of financially security and their spending habits.
So your parents borrowed against the value of their home to put you through college. They could have also taken out parent plus loans to do the same thing. Why is this an argument for letting home prices soar?
you can’t take out loans if you have no collateral.
Yes you can take out parent plus loans without collateral. That’s their entire reason for existing.