Isn’t this already a thing? Or is the difference that it doesn’t have to be paid back? Or is this just noise to make it seem like they are doing something?
adamwho on
I know someone who did this around 2006-2007.
They drained their 401ks and moved all their money into housing.
The 2008 collapse happened and they lost everything.
In the next 10 years will be moving into peak population…. And then maybe housing will ease naturally.
joepez on
Already a thing and still a terrible idea for most people. Man wall st really wants at those 401k dollars to keep propping themselves up.
Also given the average 401k size and account holders this will not move the needle on home ownership.
Gamer_Grease on
IMO this makes sense to some degree. Housing has often been touted as a retirement investment. There’s a risk of “burning the candle at both ends,” so to speak, in that rather than investing in housing *and* the market, people will simply be investing in housing, and need to liquidate when old. But I think it’s not such a crazy idea.
I’d say the bigger risk is continuing housing inflation by unlocking more cash to pour into it.
TravelerMSY on
It’s not a terrible gesture by itself, but it does nothing to fix the underlying problem of there being a lack of new houses being built.
If anything, it will be like any other financial modifications that make the monthly payment lower. Making them easier to buy (collectively) will just push the prices up in the absence of new supply.
Federal legislation that preempts state and local zoning to make every plot of land zoned up to four units would do a lot more to fix housing then where you get the down payment from. But that fucks with rich peoples neighborhoods of single-family homes and likely to never happen…
Reddisuspendmeagain on
I thought you could already do this with a no penalty loan but you have to pay it back. If they’re talking about distributions with no penalties then I’m interested in buying a second home overseas now for retirement in the future because I won’t be able to afford to retire here.
WSBiden on
They’re trying to stoke demand where there’s already plenty. Housing has a supply problem. Stick to preventing corporations from buying up all the single family homes, that helps the supply problem. Start putting more limitations on airbnbs while you’re at it.
7 Comments
Isn’t this already a thing? Or is the difference that it doesn’t have to be paid back? Or is this just noise to make it seem like they are doing something?
I know someone who did this around 2006-2007.
They drained their 401ks and moved all their money into housing.
The 2008 collapse happened and they lost everything.
In the next 10 years will be moving into peak population…. And then maybe housing will ease naturally.
Already a thing and still a terrible idea for most people. Man wall st really wants at those 401k dollars to keep propping themselves up.
Also given the average 401k size and account holders this will not move the needle on home ownership.
IMO this makes sense to some degree. Housing has often been touted as a retirement investment. There’s a risk of “burning the candle at both ends,” so to speak, in that rather than investing in housing *and* the market, people will simply be investing in housing, and need to liquidate when old. But I think it’s not such a crazy idea.
I’d say the bigger risk is continuing housing inflation by unlocking more cash to pour into it.
It’s not a terrible gesture by itself, but it does nothing to fix the underlying problem of there being a lack of new houses being built.
If anything, it will be like any other financial modifications that make the monthly payment lower. Making them easier to buy (collectively) will just push the prices up in the absence of new supply.
Federal legislation that preempts state and local zoning to make every plot of land zoned up to four units would do a lot more to fix housing then where you get the down payment from. But that fucks with rich peoples neighborhoods of single-family homes and likely to never happen…
I thought you could already do this with a no penalty loan but you have to pay it back. If they’re talking about distributions with no penalties then I’m interested in buying a second home overseas now for retirement in the future because I won’t be able to afford to retire here.
They’re trying to stoke demand where there’s already plenty. Housing has a supply problem. Stick to preventing corporations from buying up all the single family homes, that helps the supply problem. Start putting more limitations on airbnbs while you’re at it.