Nationwide, it makes more financial sense to buy a home than rent. But it gets a little more complicated for those in their golden years. Retirees also need to decide whether they want to leave an inheritance behind, this is an important factor that helps them choose between renting and buying. It is obvious that including property in your retirement plan is a good idea. But if a retiree does not want to pass on an inheritance then it is always more advisable and cheaper to rent than to buy.
Building equity is one of the important factors that favor buying. If you plan to leave it to your family then buying is the sensible thing to do, but if you are not concerned about the value of equity then renting is the better option.
Why would I sell my house and rent one when I retire?
You might ask yourself this if it is smart to own your home once you retire. While real estate is a great investment when you are in the accumulation phase of your life it can be quiet a job to hold on to after you retire. In retirement you don’t necessarily need a ten bedroom home or a huge property with a big yard. In fact climbing stairs or mowing the yard can be quiet a task. Renters get to outsource emergency repairs and some home maintenance chores, which can make life easy for a retiree. Downsizing to a smaller apartment can also improve your retirement finances.
Tap your home equity- When you sell your home and become a renter, you can add that home equity to your nest egg, and your retirement finances can improve. Downsize to a smaller apartment. Your children have moved away and you don’t need a big place, so rent out a smaller apartment or a single-storey home so you avoid the stairs.
Lower your cost of living- Retirees needn’t live in areas which are closer to offices or schools you just move out a bit and your cost of living falls down.
Outsource home maintenance- In many rental agreements it is the landlords duty to maintain the property including the lawn, outside of the building and even appliances.
Live near the amenities you us- Sometimes retirees prefer to relocate to a place which is close to or walking distance from stores, parks and recreational opportunities.
Relocate near your family- This can be a great time to be near your children and grandchildren, and help one another by taking childcare or elderly care.
More flexibility- Renting gives you more flexibility, to experience a new location or lifestyle without life time commitment.
Finding age- Appropriate features in a new home, where you can live on your own for as long as you can manage after retirement is a boon with renting. Some senior housing arrangements allow you to live independently for as long as you are able to then increase the level of services as you need them.
Read More About……………Retirement Homes- Dignifying Senior Living in India