Some people think that when retirement comes, it means that you should already have paid off your mortgage. But what a lot of retirees don’t know is that renting a home is a way better option for them.
Typically, once you are in your retirement years, you usually live with your spouse only. Your children also have their own families now, and you probably don’t need all those spaces anymore. The best option would be selling the house, renting a home, and enjoying your retirement money. Just use the money that you got from that house to find you a nice cozy place to settle in.
Renting a home is better because someone else will be the one in charge of maintenance. You probably know by now how difficult it is to maintain a home, especially with unpredictable expenses. This means that selling your home off is a great idea.
If you’re still having second thoughts, then the reasons below on why it is better to rent may surely change your mind.
As we get older, we may experience a lot of challenges, including physically. It can be daunting to move around the house, especially if it’s a big one. Based on a survey by the Census Bureau in the US, there are 40% of senior citizens who have one disability. Most of the disabilities will include trouble climbing or walking.
When we reach the age of 60, it can be tiring to climb the stairs and to clear the pathway with snows. The risk of falling and slipping is also high, which can also become serious since their bones get brittle as the year passes by. Falling and slipping can cause a traumatic brain injury or a fractured hip.
Also, getting in and out of the shower or the bathtub can be tricky. Everything that you used to do before easily will be difficult today, even turning the faucets or the doorknobs, especially if you have arthritis in your wrists or hands. So selling your home and transferring to a smaller one where you no longer need to maintain anything yourself, since the landlord will take care of those for you. Choose a home that will make it easier for you to move around and of course, one that has good maintenance personnel to take care of your needs.
Another good thing about renting is that you can move from one home to another. You can either be near your children or near the place where you often go to. Also, you can skip the home maintenance, including cleaning the gutters, removing snow, trimming trees, or taking leaves. Since as mentioned above, your landlord will be the one to take care of those.
Now when it comes to moving, choose a home that offers a shorter contract though if you plan on staying there for long, there is no need for that. Getting a shorter contract means you can easily move from one house to another. With longer contracts, you may be asked to pay a fee for not following the lease’s contract.
Difference Between Renting And Owning
Based on a survey conducted, retirees who are not that concerned about leaving their home prefer renting homes in different states. Some homes are worth $400,000, but resting home is much lower than that. You can use that $400,000 to invest somewhere and get an annual return, which can also work as your income.
One of the benefits of renting a home is that you don’t have to worry about renovation expenses, taxes, and maintenance costs. Maybe the only risk here is that your rent may increase or that your investment may move with inflation. But remember that renting out will lessen your total expenses, thus providing you a better cashflow.
Retirees Who Want To Rent
Based on a study from The American College of Financial Services, individuals between 55 and 75 of age prefer renting a home. They prefer investing their money instead of maintaining a home. Of course, there are still people who want to stay in their homes, while there are also ones who are still undecided.
The practicality of renting can never be overseen, because of the benefits that it has, especially when it comes to your finances. That is why more people are opting to rent, especially during their retirement years. It will cause them fewer headaches since they don’t have anything to worry about with the home that they are living in. Maintenance will never be a problem again, and it will never cost them anything.
Whether you think that staying in your home is more practical or you’re still undecided, give the idea of renting a chance would be best. You might just change your mind if you start computing the money that you will be saving from renting.
Photo Sources: Signature Homes, Consumer Affairs, Flickr
Based on Materials from Mass Mutual Blog