Why you might want to consider renting in retirement
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Some people rent in retirement because they don’t have much choice; they can’t afford to own homes. But financial planners say renting can make more sense than owning in some circumstances, even for retirees who can afford the costs of homeownership.
Renting offers flexibility as well as freedom from…
For many retirees, the thought of renting a home can raise a lot of mixed emotions; financial uncertainty, inconvenience, and a sense of instability. However, with the right circumstances and guidance, it may be a great and smart move. According to NerdWallet, a reputable personal financial website, there are a few instances when renting may be the best decision for retirement.
For starters, NerdWallet states that for retirees who have already purchased a home in their prime, leaving the maintenance and repairs to someone else may be the ideal situation. After all, taking on such duties can be incredibly time consuming and costly. Instead, retirees may choose to move into a rental unit that offers a “turn-key” home solution and relieves them of the time and money spent on upkeep.
Another option for those considering retirement is to rent a home in an area that better suits their new lifestyle or goals. Some retirees may decide to relocate to a different state or city, or they may want to move to a warmer climate. In a rental unit, they are able to fulfill their dreams without the financial obligation of a mortgage.
Finally, if a retiree is looking to downsize, renting may be a great way to avoid the stress and hassle of a more permanent purchase. Downsizing homes is a great way to trim expenses and adjust budgeting, and with renting there’s no need to worry about the potential of investment losses.
Ultimately, while renting may seem like a questionable decision to retirees, there are cases where it can make financial sense and assist in achieving their retirement goals. NerdWallet provides a great source of information for those considering this decision.