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Originally Posted by CRS
That's the exact same scenario. You're just choosing between option A and option B. You'll need to dive a bit deeper into why you would or wouldn't want to save the extra money. Is it the convenience of the location or building you're buying into or do you want to leave a nest egg for future generations?
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I completely agree that you’ll need to dive deeper. The math makes sense, but one must look at the full financial picture to determine whether or not it’s a wise move. Perhaps they are moving into a property that has fewer stairs (mobility issues) or closer to transit (eventually they won’t be able to drive). Maybe they want to stay close to their kids or social circle. Heck, maybe they’ve stashed away millions in their bank account or their kids are doctors and CEOs that won’t need inheritance.
I’ve had this conversation with my parents before and downsizing from Vancouver to the suburbs to pocket more cash is completely out of the question. As a matter of fact, they said it’s more likely that I will end up there before they do.
They might dress like bums, but you’d be surprised by how wealthy some of these Chinese parents of that generation actually are.