Renting vs owning

Is it wiser to rent than to purchase in retirement? Even if the mortgage would be the same amount as rent. Can I even get a home loan at 65yrs old?

Wendy: You really need to see a financial planner. Most will do a free consultation with you before you ever agree to become a client.

Ask your question there... they'll know your income, your retirement savings and can help you towards a wise decision you won't regret later.

You could also ask your bank, get pre-qualified if you want to simply know if you can get the mortgage. Then that question is answered and you simply need to choose whether its right for YOU!

My own parents just paid off their mortgage in their mid-80s (from savings)... they could have paid it off long ago, but there must have been a financial incentive (tax write off). They do have a financial planner.

Lots of this depends on your lifestyle, your personality, doesn't it? It's really a very personal decision.

Consider yard work vs. none, travel vs. home security, entertaining, and more. Are you a stay at home person or an on the go person? Savings vs. home equity?

Hopefully some retirees will chime in below on how they made the decision!!

Best Wishes!

Comments for Renting vs owning

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Home Sweet Home ....
by: Retd. Prof. Mr. Durgesh Kumar Srivastava, New Delhi, India.

Dear friends,

I fully agree with Wendy's mature views that one should consult a good financial planner before deciding whether to rent or own a house.

I lived most of my childhood and early youth (18 years) in my parents' rented house with them. Then over a period the next 12 years, I lived in 12 different rented houses/apartments, and finally in my own self-constructed house for the last 39+ years. If a rented house is well located, has good facilities,adequate accomodation,low rent and there is little or no threat of being made to move out, a rented house is better. But only a very few persons will have all these favorable things.

In a majority of cases rented houses are short of accomodation, facilities and comforts and the rents are high. There is a constant threat of being evicted. A rented house is not your property and so there is no appreciation benefit for you for a rented house.

An owned house is your house. Many generations can use it. The appreciation in its market value is for your benefit. You love it as you would love anything that you own. There is a joy in furnighing it, decorating it, improving it and living in it. There is a permanency about an owned house. You have more chances of making friends with your neighbors. Many employers pay you house rent as a part of your pay package, even if you own the house and don't pay rents. I legally got house rent allowance every month from my employer for 32 years while lived in my own self built house.

The value of my capital investment has risen has risen 2000 times during all these years. There are 284 neighbors. Most of them know me and my family. There is parallel as well as cross friendship among grand parents, parents and children. Even the stray dogs in the locality which have had 8 or 9 generations know us. I have attended 40-50 wedding functions in the locality. I have participated, with deep sadness, equal number of mournings when people have died

However Wendy has correctly pointed out that the same yardstick cannot be applied to every case.

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