Should You Sell Your Home and Rent in Retirement? #68
Is it a good idea to continue to stay in your home that you’ve paid off in retirement or does it make sense to sell and rent a smaller residence? Can renting end up saving you money in the long run? Join me on this episode as we dive into the world of homeownership and rental properties. We will discuss some critical aspects of this conversion and link to some helpful resources. Make sure you have pen and paper ready, you don’t want to miss a minute of this episode!
You will want to hear this episode if you are interested in...
Renting or owning your home in retirement [1:15]
Protecting yourself as a renter [4:00]
Why owning your home isn’t always the best investment [7:00]
How the tax code changes can impact your housing costs [12:00]
Closing thoughts [14:00]
Does it make sense to sell?
If you have paid any attention to home prices in 2021, you know that the arrow is still pointing up and to the right. While various parts of the country have taken some time to catch up, the fact is, home values are up by large margins all over the country. Should you sell your home and net a profit like my friend down in Florida did when he sold his home for over $300,000 more than what he bought it for last year? Here are a few factors that savvy investors like you should keep in mind when considering selling your home as you approach retirement.
Identify your goals. Are you planning to stay in the area long-term or do you want to be able to move around with ease?
Who do you want to rely upon for repairs and maintenance? While it may be nice to not have to deal with those costs, you are also at the mercy of your landlord.
Less stability when it comes to renting can give many people pause. Leases usually only last for a year or so.
According to The New York Times, close to 80 percent of people 65 years old and up own their own homes. On the other hand, one of the fastest-growing groups of renters is those in their retirement years. What path is the right one for you and your family? To hear me expand on these factors and so much more when it comes to housing in retirement, make sure to listen to this episode.