Should You Rent Or Buy A Home In Retirement?

When we retire the idea of renting a home will be far from our minds. A lot of us may want to own a home, but if you want to move after retirement then you should know the pros and cons of buying vs. renting.Retirement

If you want to make a housing decision, then you may want to know the status if the prices in homes in many parts of the country especially the area where you want to settle down. This way, you will know if you could afford to buy a home or not. You financial situation is a very important factor on deciding whether to rent or buy a property.  Try to add your total savings, the place where you want to move to after retiring and the value of your current home if you are planning to sell it.

According to the study of the website Trulia, buying a home is cheaper than renting in the top 100 U.S. metropolitan markets. If you are retiring, then the low mortgage rates right now is the best time to buy. If you will be retiring in the future, however, renting might be a good plan due to increasing home prices and higher mortgages.

Of course, mortgages typically require a down payment, which can involve coming up with a serious chunk of cash up front.

Getting a mortgage will require a down payment, but if you have sold your home or planning to sell one, the down payment may not be a problem. You may also consider using your retirement accounts, but you will have to cut down your daily expenses.  You may also lose your tax deferral when you take out cash on your retirement accounts. You may also not want to have a mortgage after you retire.

Getting a mortgage is not just about finances. A lot of retirees get a psychological boost from not having to worry about paying debts after retirement. Now, that is definitely worth something.

Posted by: Rebecca White on

Tags: , , , ,