Real estate and index are other scams, lost quite a lot after covid hit
Maybe he has a very short term view of real estate or stock market index funds..
Depends on which country you are living in and what are the local laws. Someone buys a house in developing property. The builder goes bankrupt. But the bank forces you to pay up the full amount of mortgage as the banker had paid up full property value to the builder. Now you are out of your money and with a half-built house. Builder in prison for fraud as well. This situation can be the worst retirement nightmare.
If your investing for retirement and close to end date, you go for low risk options. Investing in a developing property wouldn't be one of them.
You don't invest right at the retirement time, definitely, it is done much earlier so that your mortgage doesn't start eating into your retirement benefits.
He is paid as and when his next phase of construction starts. The banker had a 3 phase payment plan with the builder and the 3rd phase is with 30% construction, so the house is 70% constructed. Since the whole area is not developed you can't even think of developing the unfinished house and moving in. Nobody wants to stay in a ghost town.
