Should I Buy or Rent a Home in Palm Desert After Retirement?
So you’ve retired from your job, you probably have more freedom and you’re weighing the benefits and pros and cons to buying a home or renting somewhere. It all depends on your age, lifestyle, and your current finances. Are you looking to move to a different state or city? Are you looking to downsize? Are you looking for freedom from household maintenance and responsibilities?
All of these factors will play a role in whether or not buying or renting makes the most sense. Although age doesn’t necessarily make a difference when renting or buying, health usually does. Are you looking for an active community or a little more low-key? If you purchase a condominium or town home you won’t have to worry about a lot of the external maintenance such as siding, roofing and landscaping. If you choose to rent a condo or townhome you will have very little responsibilities on the interior parts of the home as well.
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Renting makes an ideal option for those in poor health as it can reduce stress and increase their security. If you’ve purchased in the past and have equity in a home, the profits from the sale of that home may be beneficial for daily income and living. Most senior citizens are living on a fixed income and extra money can be difficult for mortgage may be out of the question. Mortgage payments are typically set in stone with a fixed rate and remain constant for the life of the loan. Sudden medical expenses can wreak havoc on a fixed income budget and having a monthly mortgage payment can add stress and pressure to the budget.
Buying on the other hand, when feasible, can add equity and profit to inheritances and future security, although you do have the responsibility of maintaining and caring for the property. Flexibility is also decreased as you can’t rush off to Europe at a moment’s notice when mortgage payments are due each month.
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Again, it comes down to lifestyle and financial responsibility. How much you’re willing to undertake can determine whether renting or buying makes the most sense for you. I specialize in helping seniors, active adults, and homebuyers of all ages find the right home for their needs and their budget. Call me today and let’s discuss your situation and determine the right direction for your lifestyle.