Is It Better To Own or Rent in Retirement?
Plenty of Baby Boomers have their eye on retirement. Many people look forward to no longer having to go to work and to enjoy senior apartment living very soon. Many retirees will sell their usual home and get something smaller to live out the rest of their lives. This calls into question one important inquiry: should you rent or own in retirement.
As you look for apartments for rent or to purchase, you need to ask yourself how you can sustain yourself during this time. You may want to downsize during this time, and many retirees no longer want to maintain their houses in their older ages. As you near retirement, it is critical to look at various factors so that you can comfortably live in houses or apartments in Shelby Township.
Home Ownership as an Asset
There are numerous positives to owning a home, but there are also some setbacks. You are responsible for paying for any damages that occur around your property. You also have to remain up-to-date on property taxes. With all of this, it may simply not be possible to pay for everything while maintaining a good quality of life.
However, renting also comes with drawbacks. When you own a house, your mortgage remains the same from one year to the next. Rental prices continue to increase around the country, which is a major setback for senior apartment living. When you are on a fixed income, you may not be able to afford higher rent prices. Ideally, you want to spend no more than 15% of your annual income on housing whether that is paying rent or a mortgage.
Tap Into Home Equity
It takes some people years to realize a house is a form of equity. If you are savvy enough, you might be able to tap into that equity as part of your retirement income strategy. You have several options at your disposal, which can include renting out the house or taking on a reverse mortgage. These options have their pros and cons, so you need to look at each one to determine what is best for you.
Ultimately, before you decide to stay at home, you need to figure out if you can reasonably live there in older age. As you get older, it may be more difficult to go upstairs. You may also need to remodel your bathroom so that you can safely bathe in retirement. With this in mind, it may be preferable to pursue senior apartment living when a house no longer makes sense for your needs.
Do Not Feel Forced To Sell
Real estate is a hot commodity right now. However, you do not want to be in a position where you feel forced to sell your home because you need the money. Therefore, you want to plan ahead before you retire. This may include refinancing your mortgage to span out a longer period of time. It is much more difficult to refinance once you are in retirement, so you need to do this well in advance if you want to stay put.
If you want to sell but are worried about being alone, then another option is to consider renting out some of the rooms. You lower your overall cost of living. You also save money on internet and cable costs because they tend to be the same regardless of how many people live in a house.
Contact Shelby Park Manor
Senior apartment living works out well for many retirees, but you need to look ahead to make sure it is right for you. When you need a new living situation in your golden years, you should look at Shelby Park Manor. We are a 55+ community, so contact us today to see whether our apartments are right for you.