For some Baby Boomers, buying a new home for retirement may not be the best idea. In fact, there are many benefits to renting instead. Whether you’re retired or retiring soon, here are some great reasons to consider renting a home!
Cannot Afford to Buy
A huge cause of the housing market crashing was predatory lenders giving money to people who could not afford to pay their monthly mortgages. If you cannot afford to buy, a 55-plus rental is a perfect option. If you’re a senior living on a fixed income and it would behoove you to live below your means, then this is something to consider! Using too much of your income to go towards a house payment is a dangerous financial practice that can set you up for financial disaster.
Unsure of Where you Want to Live
Many seniors want to travel and explore! There are several 55+ houses for rent all over the US for those looking for not-so-permanent options.
The economy seems like it’s always in a state of uncertainty. As such, buying can feel like more of a risk. Purchasing a home in a down economy may be good for young investors but certainly not for seniors. Seniors should be looking for financial stability and ways to minimize risk. Renting puts you in a much safer financial position thereby shielding yourself from potential risks associated with buying in an uncertain housing market.
Some states have astronomical property tax rates that add hundreds to your monthly mortgage payment. When you rent, you don’t pay property tax. Money saved can be used toward other expenses (or, just be saved!).
Many 55-plus apartments and homes in active adult communities offer great amenities! There’s home maintenance, yard upkeep, social programs, clubhouses, transportation, pools and fitness centers, and even on-site medical care.
Owning a home is a huge responsibility! You have to do yard work and take care of any home repairs or hire someone to do it for you. Renting a retirement home alleviates most of this responsibility, leaving you with more time to enjoy your golden years.
Research shows that seniors who are actively involved in social programs and have relationships with their peers are happier and healthier. Renting a retirement home in a community gives you instant access to people the same age who have the same interests.
Need Something Else?
Want to read more great senior living articles? Then check out our Retirement Lifestyle Blog!
Need help with retirement planning? Then check out Bob Carlson’s Retirement Watch!