patrick.net

Patrick says

He cited the strong performance of retirement accounts as a reason to preserve those funds rather than encourage withdrawals for housing.

Correct. Retirement accounts are for retirement, not to prop up house prices.

HeadSet says

Patrick says

He cited the strong performance of retirement accounts as a reason to preserve those funds rather than encourage withdrawals for housing.

Correct. Retirement accounts are for retirement, not to prop up house prices.

That’s a good point. What’s next? Ca
R guys get Trumps ear… withdraw to buy a car.

Defeats the whole retirement point.

Yep, and allowing withdrawals from 401ks isn't going to help those under 40 buy anyway, nor will it impact the market.

The Government is fucked in attempting to control housing prices.

Biden already let any illegal with a pulse get a nothing/almost nothing down minimal documentation loan.

zzyzzx says

You forgot GPUs, and now RAM….

zzyzzx says

Yes, go ahead and try "scalping" real estate. I bought and refurbished many homes to use as rentals. In no case could I have covered the initial costs of the home plus the refurbishment cost if I sold it soon after buying. I bought them to rent out long term, because even with a slight negative cash flow I figured I was buying a house for $20 a month. When I finally sold these houses, I did make good money even after the recouped depreciation and cap gains tax. Also, being a landlord is not like being an investor, it is like having a part time job.

HeadSet says

Retirement accounts are for retirement, not to prop up house prices.

It's legal to buy a house with your 401(k) money already, and has been for a long time, as long as it's an investment.

You just can't live in it.

So that feels contradictory. You can invest your retirement money in a house, but not your own house.

Patrick says

So that feels contradictory. You can invest your retirement money in a house, but not your own house.

Actually, that makes sense. Rental property is money making, a private house is consumption. Same reason you can use 401(k) money to buy Ford stock but not a personal Ford truck.

Imagine that - a tax law that actually makes sense. It must have been written in the 1970's - that's the last time politicians actually legislated.

EDIT: I'm not mocking anyone - I find it refreshing when a law actually makes sense.

https://wolfstreet.com/2026/01/29/californias-population-declines-again-200000-since-2020-relief-for-housing-shortage-as-new-supply-keeps-getting-built/

Home prices in California are down 2% year-over-year and roughly unchanged since July 2022.

California’s population declined again in the 12 months through July 1, 2025, to 39.36 million people, after two years of growth, and is 200,400 people below the “estimate base” of April 1, 2020 (39.56 million), according to the Census Bureau annual data on the US population.

That put California’s population where it had been in about 2017 – essentially eight years of no population growth.

CA also has been taking away more and more land away from potential builders. Plus building activity has been weak for years.