Renting vs Buying in Retirement
by Valerie H
I know that the general rule is NOT to have a mortgage in retirement, but what if I could purchase a condo in NC with a 15 yr mortgage that would result in less than what I would pay for rent monthly.
Would it make sense then? Or is getting into the housing market at 65yrs old a mistake & very risky.
Would I even be able to get a mortgage at 65?
Thanks for listening.
I think we hope not to have a mortgage in retirement so we have more spendable income -- but it often doesn't happen. Somtimes its on purposes, sometimes we are forced to continue to payoff a mortgage -- not sure there is one pat answer for all retirees, right?
My folks, at 86, just paid theirs off this year as they no longer had any write offs other than the home interest. Right or wrong - they paid that mortgage month after month...
They also bought a condo in Las Vegas at 65... and their neighbors have condos there too (both originally from other states and moved there). Now both neighbors rent out the condos, and moved to a larger senior condo community and have new mortgages purchased when condo costs were at greatly reduced rates. They thought they made wise decisions... only time will tell! They ARE living a happy sunshine-filled life right now!
You REALLY should seek a professionals advice... see your banker, or a financial planner (or both and see if their answers are close or completely different). Seriously, its a good test to see if you like the answers you get, or not.
My question is: If you have mortgage payments, does your monthly income cover them and all other living expenses?
Does putting a down payment on your mortgage leave you with cash reserves for the times you might need a withdrawal? Or does it leave you strapped with a home but no money for repairs or emergencies?
Finally, down the road, with equity in a condo -- you could do a reverse mortgage if need be for cash income too.
See a professional... just get their two cent opinions to make an educated decision.
Anyone Else want to chime in??