For much of your life, you might have dreamed of paying off your mortgage before retirement. Many people do. But when the time comes, plenty of retirees say that home ownership actually becomes a burden, and that they actually prefer to rent!
Why would anyone say this? It appears there actually are some benefits to renting a home in retirement, versus owning.
- You can cash out the equity in your old home and fund your retirement, a move, or something else that is important to you.
- You can downsize into a smaller home that is more manageable.
- You can try out a different area of the country, or simply a different part of town or type of housing, without a commitment.
- You can move around if you want!
- You can live closer to family, or even take turns living near different family members.
- You don’t have to pay for repairs; your landlord is responsible for the leaking roof, the faulty plumbing, and the appliances that break down over time.
- No worries about rising property taxes (although rent might rise in these cases).
- Less hassle for heirs someday.
Of course, there are still plenty of reasons to own your home in retirement. Perhaps you’re certain of where you want to live, your home suits your lifestyle, and you appreciate not having to pay rent or a mortgage payment.
If this is the case, just remember to set aside some cash in an easily accessed savings account. Emergencies do happen, and you don’t want a broken refrigerator or plumbing disaster to negatively impact your budget.
As you continue to plan for retirement, meet with us regularly. We can help you decide whether renting or owning is right for your situation, and help you to budget for all of your needs and priorities as you enter this next stage of your life.