Retirement Approaching: Should You Rent or Buy?
If you’re on your way to retirement, downsizing can be a great option. This is especially true if the lack of funds is an issue, as it can stretch money and savings. It can also lower monthly costs and upkeep requirements associated with owning a large and a spacious property.
Mortgage brokers at Mortgage Ogden note that when you’re considering downsizing, you need to decide between renting and buying. Renting an apartment will require a few adjustments, especially if you have never done it. Purchasing a new home, on the other hand, has its own challenges.
Consider Different Factors
Your decision of whether to rent or buy should be based on different factors. Evaluate the relative home values and annual rents in different communities, as well as your cash-flow needs and estimation for a rent hike. Don’t forget to consider home maintenance costs and investment growth. You may also have to think about your emotional and non-economic issues.
The Flexibility of Renting
If you think the budget is a major concern, renting can be an option. It is more flexible than buying and you won’t have to worry about home loan application or losing and gaining equity. You can also move easily if the lease suddenly goes up. There is, however, no tax advantage to renting, as your landlord will get all available tax breaks. There is also limited ability to personalize your space.
The Many Benefits of Buying
It is true that renting has several benefits, but this doesn’t mean that you should disregard buying. If you intend to sell your home, you can use the money to buy a new one. There is no feeling of throwing money out of the window because of monthly rent payments. There is also the advantage of enjoying price appreciation of house gains for the long term.
Always weigh the pros and cons before making a decision. If you think that buying is a much better option, talk to a reliable lender or broker to know more about mortgage options and deals.