We talk a lot at Jason Cohen Pittsburgh about the benefits of renting for college students or recent grads. But that’s because Pittsburgh has a huge college presence and is a city that’s getting younger. We don’t talk a lot about the benefits of renting a home for retirees.
You usually think of retirement as a time when you’re slowing down, when life is about relaxing and enjoying what you’ve earned in your years of working. But, things are changing. People are living longer, and they are often working well into their golden years. The current economy may not allow for the leisurely retirement of yesteryears. With this climate in mind, renting a home instead of buying can have several benefits for retirees.
Buying a home can give a sense of security. It’s permanent and yours. However, it also comes with additional responsibilities that can offset that peace of mind.
If you’re weighing buying vs. renting in retirement, ask yourself the following questions:
Do you want to use retirement plan money to buy a home?
Unless you sold a previous home for a profit, you may have to withdraw retirement money to use as the downpayment. This cuts into your budget.
Do you want a permanent residence?
Some people retire in their hometown while others want to use their years off the job as a time to explore. Renting allows you the freedom of exploring different areas whereas buying requires more surety. Unless you are absolutely certain of where you want to retire, it may be best to rent first, at least until you’ve done a bit of exploring.
Do you really want a 30-year mortgage to start when you’re 65?
Let’s say you do get to retire at a traditional age — you’ll still have a mortgage until you’re 95.
Do you want to deal with banks and loans and all the other tedium that accompanies a mortgage?
You probably didn’t want to deal with this the first time around.
Above all, isn’t it time to enjoy retirement? That means, do you want a mortgage hanging over your head? Do you want to be responsible for unexpected expenses and unwanted repairs?
Basically, the question of owning vs. renting in retirement comes down to how much work you want to do at this time in your life. At Jason Cohen Pittsburgh, we try to take our residents’ minds off their apartments. That’s the major benefit of renting. It may cost a bit more per month, but that cost is consistent and the burden of maintenance is on us, not you. Ask yourself if that is something you value in retirement.