Have you always dreamed of living in a mortgage-free home? For many, this goal is central to their retirement plan. Not only does it feel good to free your budget of what is probably your largest monthly expense; there’s just something about coming home to a house that completely belongs to you.
So it’s no wonder that paying off your mortgage might be central to your retirement plan. But you might be surprised that many retirees decide to go back to renting at this stage in their lives! Why is that? It turns out that there are quite a few benefits to renting, as opposed to owning a home.
Retirees who prefer renting say that their choice was based upon one or more of the following factors:
- Cashing out the equity in their homes allowed them to fund retirement or something else that was important to them
- Downsizing into a smaller home means less housework and easier maintenance
- Moving to a new location is a snap, and there’s no commitment to stay there if things don’t work out
- Traveling around the country in an RV, or around the world on cruise ships, is more fun than staying in one place
- Moving closer to family, or splitting time between several family members, is important to their happiness
- Living free of worries about repairs and even yard work is more important to them than ownership
- They no longer have to worry about rising property taxes
- Renting simplifies estate plans in a number of ways, making things easier on heirs someday
After reading that list, it’s easy to see why some retirees prefer to rent!
But still, you might prefer to remain in your home for other reasons. If you’re emotionally attached to it, you already live close enough to family, you don’t mind the maintenance, and you have no desire to move somewhere new, it makes sense to stay put and live payment-free. But do remember to set aside some cash in an easily-accessed bank account, to cover unexpected roof leaks, plumbing emergencies, tax hikes, and so on.
Whether you want to stay in your old home or travel freely in retirement, we can help make your dreams a reality. Call us to schedule a consultation, and we will help you put together a retirement plan that works for your lifestyle and budget.