If you’re like many people, you’re thinking about making your golden years… well, more golden.
Owning a house can hold you back from enjoying your retirement, particularly if you’ve owned it for the past 30 years (or more) and it needs plenty of maintenance, occasional (or more frequent) repairs, or even remodeling to stay in decent shape.
So should you rent a house, apartment or condo instead?
That’s a tough question—and it’s one that depends largely on personal preference.
Here’s what you need to know about renting versus owning during retirement.
Home Ownership After Retirement: Should You Rent Instead?
Because every situation is different, it’s important that you look at your circumstances objectively. Renting may not be the ideal choice for your retirement years—but home ownership might not be, either.
Pros of Giving Up Home Ownership During Retirement
Naturally, you won’t have a monthly mortgage payment if you sell your home when you retire. For some people, this means entering retirement debt-free (or even well into the black, particularly if you’re going to turn a profit on the sale of your home).
You won’t be tied down to your house, either. If you’re ready to become the globetrotter you always wanted to be, owning your home could hold you back.
You can say goodbye to maintenance woes, too. If you’re a renter, the property owner handles maintenance and repairs.
In many cases, renting gives you the chance to enjoy amenities that you wouldn’t have in your own home (hello, community pool, fitness center, and other perks!).
Finally, you’ll save money on homeowner’s insurance. Even if you opt to purchase renter’s insurance, the average policy is somewhere in the neighborhood of $250 per year.
Cons of Renting During Retirement
In some places in Colorado, renting is more expensive than owning.
The tax breaks associated with homeownership are also gone if you choose to rent when you retire—and you may not realize how those savings added up (you can say goodbye to deductions for property tax and mortgage interest).
You’ll also have to adjust to not calling the shots; your landlord will be the one who does that. If you have maintenance issues, you’ll be waiting on repairs instead of holding the reins. Depending on what your lease or rental agreement says, your rent could go up, too—and that’s something that doesn’t typically happen when you hold a mortgage.
Are You Selling a Home in Aspen?
If you’re ready to make the leap from home ownership to renting so you can be free from house hassles, we’d love to help you sell quickly and at the right price. Call us at 970-429-8275 or get in touch with us online to learn about our innovative marketing strategies.
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