Is Renting or Buying a Home Better for Those Who Are Retired?
If you have retired, you may be considering which route is better to take when considering where to live. As with most things in life, there are pros and cons to both renting a house and buying a house. Which is better for people who are retired? It depends on what you are looking for.
For instance, if you are looking for a maintenance free home in which you’re not responsible for repairs or upkeep, renting may be the way to go. However, owning a home takes the landlord out of the equation and keeps things like rent increases from happening. Of course, maintenance falls under your purview as a homeowner. It can be a tough decision to make and something retirees struggle with. Despite which way you go, one thing is for certain: Housing costs will factor into your budget.
Owning A Home
There are, of course, benefits to buying and owning a home in retirement. Owning offers stability, tax benefits, and equity. It also offers the opportunity to do what you’d like with the home without seeking approval from a landlord.
Stability is a big factor. When owning a home, you are not at the mercy of your lease and your landlord’s plans. Even the most benevolent landlords look out for themselves, and if you don’t fit into their plans for the property, you may be forced to leave. Owning alleviates those issues and gives you a stable place to live until you decide to move. Owning a home also presents certain tax breaks and protections that renting does not.
Building equity, especially if you are looking to leave an inheritance, is also possible through owning a home. You may also be able to use that equity to take a loan or for other purposes. Depending on where you buy, a home can be an investment that appreciates rapidly. Buying a home for investment purposes, however, isn’t a great idea. It could go the other way, and you could lose money.
Renting a Home
There are benefits to renting, as well. As mentioned, you and the landlord can contract your lease to make the landlord responsible for maintenance or upkeep. You may be ready to downsize, and renting a smaller home or apartment makes sense. Renting may also be easier if you anticipate a loved one will need to go into long-term care soon. There may also be fewer costs involved in renting, especially when things break as the landlord will likely be responsible.
Renting may also free up money for other things, like taking a vacation or investing. Unlike owning a home, however, there are no tax breaks available for your expenses, and you won’t be building equity while you pay rent.
Essentially, the decision to rent or buy comes down to what’s best for you and your financial and living goals. If you are looking to build equity and take advantage of owning your own space, buying is right for you. If you’re looking to have more income freed up while having less maintenance around the house, renting could be right. No matter which decision you make, consulting with an experienced estate attorney can help you make the right decision for your goals.
Contact an Estate Planning Lawyer
If you are retired, or planning on retiring, an estate planning lawyer can help you with your estate plan. You can run your plans by an experienced attorney who can help you to execute your wishes. The Mattar Firm can be reached 24/7 at 844-444-4444. Call for your free consultation today!