If you’re approaching the age of retirement, or even if you’re already retired and looking for ways to maximize your assets, then you may have considered renting as an alternative to keeping your home.
For years, we are reinforced with the message that owning a home is essential for retirement. While home ownership definitely can make retirement more comfortable; that doesn’t mean that it’s absolutely necessary to hold onto your home while you’re in retirement. Increasing numbers of retirees are choosing to rent instead. And these are the most popular reasons why.
Renting Allows Retirees to Choose a Home That is Age Appropriate
A large family home can be perfect for raising a family, but it can be difficult to live in one in your senior years. Split level homes, stairs, and other features could make daily life impractical or outright difficult. By renting, it’s possible to choose an affordable home that is better suited to a retirement lifestyle.
Rental Homes Reduce Maintenance Obligations
Expenses in retirement should be mitigated and eliminated whenever possible. No matter which way you look at things; home ownership is often expensive. Maintenance requirements on a home can have a significant financial impact in retirement. Renting a home takes away much of the obligations for maintenance, so there will be no unexpected payments required to perform repairs on a home.
Renting Can Allow for a Move to A Retirement-Friendly Neighborhood
Staying in a family home throughout retirement means sticking to a single neighborhood. While you may have chosen your home as a great place to raise your family, it might not be so convenient for retirement living. It may be some distance from services like clinics, banks, or anything else that might make retirement more convenient. Moving to a rental property can allow you to get closer to essential services, or, you could even relocate to a city that is friendlier for retirees with a nicer climate and plenty of entertainment.
Renting Frees Up the Family Home for Sale
You’ve been building equity in your home for a lifetime. A home is a major investment and it’s probably your most valuable asset. Selling that asset for retirement can mean gaining a significant amount of cash, depending on how much equity you have in the property. If you own your home outright, then you’ll be set to receive all of the proceeds of the sale.
In many cases, retirees have sold their homes and have used the capital gain for comfortable retirement living. You may even be able to give funds to family and help them to get onto the property ladder, or even get started in the investment market.
Creating a comfortable retirement is all about knowing your options. There’s nothing wrong with staying in your home for the remainder of your lifetime, but it is still nice to know that there are alternatives that could make retirement more comfortable and more affordable.
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