Renting vs. Buying in Retirement
We've been told since we first began our careers how important it is to plan for retirement. After all, how you spend your golden years matters, and you'll want to do so in a space that works for you. Retirement may seem light years away or it may be just around the corner. Either way, figuring out your next move is critical. You may have been planning to sell the family home and move into a smaller space, one with less maintenance and less rooms to clean, which is what many retirees look forward to the most. So, should you rent or buy your next home? This decision is a big one, which is why we wanted to provide you with some helpful insight on renting vs. buying in retirement.
Why Rent During Retirement?
First off, you'll need to establish your goals during retirement, in order to choose the best option for you. Are you looking for more stability or are you looking for flexibility? Renting gives you that flexibility to be able to try out a new area or travel more without being tied down to a place that you own and all the maintenance that goes along with it. Even when you decide to move into a retirement community or condo, there are still aspects that you're responsible for, although they typically don't include mowing that grand expanse of lawn you used to own or fixing the gutters. Benefits of renting during retirement include:
Can be cheaper, especially when you're not responsible for repairs and maintenance.
Less stress and estate planning issues.
More lifestyle flexibility.
The ability to move more frequently, if you desire a change of scenery.
As you can see, there are definite perks that go along with renting, but it's not for everyone, even in retirement.
Why Buy During Retirement?
For those who desire stability during retirement, owning your home may be perfect for you. Now, this doesn't mean you have to stay in the family home, especially if it is too much to take care of, but you're able to downsize into a smaller home or condo that's yours. You're also able to enjoy various benefits that go along with owning a home, including:
Potentially lower mortgage payments, especially if rent prices keep skyrocketing.
More freedom to create the space you desire.
More investment potential.
Better tax benefits.
In addition, when owning your home, you won't have to worry about your rent increasing year after year, which makes this a definite advantage for many on the fence about whether they should rent or buy.
Your Golden Years
The choice will be yours to make, but in taking some of the information we provided and keeping it in mind, you'll be able to make the decision that works best for your needs. Retirement should be a time to look forward to, and spending it in the right space makes this time in your life even better.