I'm 18yo and I can't afford to buy a house. Boo hoo, page-110

SS you don't seem to have a good grasp of economics or reality.

Sure the person sitting on a $6m home should consider selling it ie downsizing and there should be incentives to do this. last time i did maths 5.8 - 3.3 = 2.5 so this example leaves the couple $2.5 million and should easily achieve a 5% yield but that doesn't come without risk. For example if inflation were to suddenly rise above say 7% their $2.5m would fall at a rate of half over the the next 10 years. This $2.5m may need to last them up to 30 years. Remembering also they will still pay tax at a marginal rate and rates etc will be expensive

So the couple that own a $2m house are in a more precarious position if they sell. Assuming they get $2m and buy again at $500k they might be lucky to net $1.4m and at 5% might secure an income of $70k on which they will need to pay tax. Assuming they have retired and have no ability to earn more money and live for 30 years they will be in a world of hurt in 10 years time if inflation takes off. So they either take risks with their money or accept their fate as they grow old.

You cannot deny people ensuring they they have enough funding for their life as they move out of the workforce. $2m sounds like a lot and it may have been 20 years ago but it will soon disappear as time marches on.

For the first couple the reality is they may have to move and downsize to something more around the $1m mark and at least that will ensure a fulfilled life in terms of income.

But each to their own and at the end of the day we have to live with our decisions.

Cheers
BW