A white picket fence surrounding a house with 2.4 children, a dog, a cat, a station wagon. This is the American dream.
But owning your own home might not be so dreamy as you approach retirement. In fact, since 1990 homeownership has been decreasing among 55- to 64-year-olds, a trend which experts suggest is likely to continue in the coming years.
Owning a home in retirement does have benefits, but make sure you weigh up the pros and cons before you make a decision. Here are a few reasons to consider on both sides of the argument.
Benefits of renting
Even if you have long since paid off your mortgage, your twilight years could still be plagued by the cost of home maintenance.
As your property gets older, what were once reasonable maintenance costs could balloon into an expensive burden.
Sometimes your home isn’t somewhere that you want to be. Maybe you want to move to a state with warmer weather, or have the flexibility to up sticks and move closer to family. Some retirees migrate with the birds, taking up an abode abroad in a different, warmer climate during winter months.
As a renter, you always have the option to leave as soon as your lease ends, unlike selling a home which could take months and involve many expenses.
Selling your house prior to retirement might be a good move if you are looking for a for a location independent lifestyle in your golden years.