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Renting vs Owning in Retirement

Today we are discussing 5 reasons why you or your family member might consider renting a home in retirement vs owning a home.

There is a lot of financial information out there that says you should own your home in retirement.  In a lot of instances this is correct but not always.  There are some exceptions.

Reason #1 is lifestyle.  This is the 1st time since early adulthood where you have the flexibility on where you can live.  You have provided a home for your children and maybe they don’t live in your town anymore and now you can just get up and go.  So maybe you want to move to a location closer to your children and grandchildren.  It is easier for you to move than them due to jobs so you may want to move closer to them. 

Reason #2 is finding somewhere less expensive to live.  Did you know GA is one of the 10 least expensive states to live in the country.  If you or your parents are in NY, you may want to explore moving somewhere less expensive un the US or you may want to take a big adventure and move out of the country to Mexico or somewhere tropical.

With both reasons 1 and 2, you may want to rent in case you find you don’t like the new location, your kids are too busy to spend time with you because they have their own lives and families or the out of country adventure ended up being more costly than you originally anticipated.

Reason #3 is upkeep.  It is expensive to own a home and it is not hassle free.  A roof needing replaced or an hvac going out is costly and if on a fixed income in retirement, you may not have the necessary funds to handle unexpected expenses or maybe just do not want the hassle of maintaining a home…it is work.

Reason #4 is accessibility.  Accessibility comes in many forms.  For instance houses are many times vertical.  If it’s time to go to bed, you have to go upstairs to the master bedroom.  If you want to play pool, you have to go downstairs to the basement.  Need to put something in the attic? Well, there are stairs there too.  As you get older, stairs go from being something almost invisible to something you absolutely dread.  Another form of accessibility is maybe you would like to have a pool for when grandkids visit but really don’t use it when they are not there but have to work on maintaining it.  Renting a townhome in a complex where there is a pool allows you to have it there to enjoy when you want to without having to do the work.

Reason #5 is you could take the proceeds from the sale of your home and put it in conservative income producing assets in which you could project your monthly and annual income off of for living, leisure and travel purposes.

I hope this has been helpful, and gives you and your family food for thought.  If I can help you with any of your real estate needs, don’t hesitate to reach out.  My team and I are on standby 7 days a week, 9am to 8pm, ready to help you take the smoother road to sold.

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