Should You Rent or Own a Home in Retirement?

Living in a paid-for home is a common retirement dream. It makes sense, considering that a mortgage payment is the largest form of monthly debt for most of us. Living free of that burden must feel glorious! Not to mention, there’s just something about looking at your home and knowing that you own it outright.?

On the other hand, home ownership can be a burden of its own. Even when paid off, a house can put a dent in your budget and become a source of considerable stress at times.?

In fact, many retirees say that they prefer to rent at this stage of their lives! Why?

• They cashed out the equity in their old homes and used it to fund retirement, a move to a preferred location, or to fulfill another dream
• They downsized into a smaller home with more manageable upkeep
• They moved to a new area without a commitment, and can move again easily if that location doesn’t work out
• They live life on the road, traveling continually, and love it
• They decided to move closer to children and grandchildren, or even good friends
• They love not having to worry about scheduling or paying for repairs
• They no longer worry about rising property taxes (although rent might occasionally rise in response)
• They appreciate the simplicity renting brings to their estate plans

All of these reasons sound good, don’t they? Of course, you might still prefer to own your home. If you love your current house, it suits your lifestyle, and the location is perfect for you, you probably don’t see a reason to move. If that’s the case, just remember to save for a rainy day. Repairs and sudden tax hikes do happen, and you don’t want unpleasant surprises to throw off your budget.?

If you’re still deciding upon where to live in retirement, or any other aspect of your future plans, give us a call. We can help you weigh the pros and cons, and then decide upon a lifestyle and retirement plan that works for you.?