There has actually been an increase in older renters over the last 10 years. Those over the age of 55 actually contribute to about 42% of the rental market now. This percentage is projected to increase as Baby Boomers presumably follow the same path.
It’s important to understand the pros and cons however of choosing between renting and homeownership. Let’s break each one down so you can better decide theater or not you should spring for that home after retirement.
Pro: Bye Bye Mortgage
If a really big focus for you is the fact that you’re still having to chip away at that mortgage then clearly you’ll be happy to rent. One less thing to worry about when you finally retire. You might even find a place to rent that has a lower monthly cost than your mortgage did. So you do have the potential to be saving money here.
Con: Bye Bye Tax Breaks
Homeowners receive substantial tax breaks. There are deductions on the property tax as well as the interest on the mortgage. Saving on these taxes can add up significantly especially if your property taxes are significantly high.
If you’re really focusing on traveling after you retire then renting will be ideal for you. Renting gives you the flexibility to bounce around either on a month to month basis or 6-month basis. However, if you’re looking to stay in one city/place for a longer period of time, maybe near your family. Consider owning a home.
Con: No More Home Owner Status
Most people have a sense of pride from being a homeowner. If you’ve lived in your home for a while you’re probably emotionally attached to it. So it’ll be important to prepare yourself emotionally if you’re planning on selling your home.
Obviously one of the most challenging things of home ownership is keeping up with the home maintenance. If you’re choosing to rent this isn’t an issue for you anymore. If you decide to sell your home these worries can fall onto your landlord’s shoulders.
Con: Renting can be expensive
This one really varies depending on where you live. Typically however, it is cheaper to own a home than rent one. Also when you consider the low mortgage rates today it’s one of the best times to own a home. The mortgage rates have recently hit an all-time low of approximately 3.25%
One of the big pro’s surrounding apartment complexes is that most of them offer you a wide range of amenities. Everything from a nice gym to a pool and even game rooms and office centers. You can even have a concierge on staff and if you’re retiring that can make your life a little easier when it comes to the little things.
Con: The Landlord
You may not be accustomed to dealing with a landlord or property management company. It can be a little bit of a difficult task , I would recommend doing some in-depth research on the situation before you actually sign a lease. By that meaning speak to the previous tenants if at all possible and find out how quickly previous issues were resolved. There is also the potential for your lease to be raised at a moments notice so be prepared for that potential increase in your monthly expenses
Pro: Insurance Is Cheaper
Renters insurance averages around $180 and $360 a year, while your potential homeowners insurance cost is significantly higher.
Not sure which is the right decision for you? Reach out or leave me your contact info and I’d love to answer any questions you might have. Choosing to rent or own a home really comes down to your individual circumstances and it’s very important to consider all the pro’s and con’s very carefully. If you’re looking for more info feel free to comb through my blog for tips and tricks that save you time and money during your real estate buying or selling process.
Do you want a competitive edge when buying or selling a home in your market? How would you like a home sale guarantee on your listing? Do you like to find deals on homes that no one else knows about? Would you like to get free LIVE video tours of homes as soon as they hit the market? These are just a few of the benefits you get when you work with me to buy or sell a home! Be sure to visit my Facebook page BobbysDealOfTheDay.com right now to find the best buyer and seller information and to see sample video tours of the hottest deals in Cobb and Cherokee County!!
Or You Can Talk to Bobby Today At: 770-714-7452 to learn how!! (Call or Text!)
Author:Bob Sims Phone: 770-714-7452 Dated: September 18th 2016 Views: 125 About Bob: ...
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