Published by Forbes.com | October 2, 2023
As you near retirement, you may wonder: Should I rent or own? Which is the best financial decision?
With today’s home prices soaring and the highest mortgage rates in nearly 20 years, buying your retirement home may be a disaster for your financial security. On the flip side, if you plan to retire in your current home, we should have a completely different retirement-planning conversation.
Some retirees will need to reduce their housing costs. Others may want a fresh start in a new location after retirement. At some point in retirement, you may not want to deal with all the hassles (and costs) of maintaining a single-family home. Sadly, with so many people behind in saving enough money to keep their living standards in retirement, access to home equity may be necessary to fund their retirement lifestyles.
For readers currently renting and nearing retirement, running out and buying a new house now would likely not help you reach your goal, or retire faster or easier. For homeowners, you may be shocked when you see what less-desirable apartments are renting for these days. Moving after retirement is not a decision you should make lightly. It is one thing to be house poor in your twenties. It’s a whole different struggle once you’ve retired.
Click the button below to learn about a few areas to consider when deciding whether to rent or own a home as a retiree.
