Renting is another way to go mortgage free in retirement
Posted on 29 December 2009
Permanent URL of this article: http://retirementrevised.com/money/renting-is-another-way-to-go-mortgage-free-in-retirement
In a recent column on paying off your mortgage to boost cash flow in retirement, I mentioned the option of selling a home and buying something in a less expensive part of the country.
Reader Nick Radesca wrote to point out another good idea–sell your home and rent a place to live. This can make great sense from a lifestyle and financial standpoint–although, as Nick points out, the idea has some stigma attached to it for some people.
Here is Nick’s story, which bears repeating:
My wife and I don’t own a home and we are proud of it. Like many seniors our age we got married young, rented apartments until we could scrape up enough money to buy our first house and owned several others since then, until now that is. Now we rent (using the interest earned on the proceeds from the sale of our last house to help pay the rent).
Let me tell you I’m someone who hates mowing the lawn, shoveling snow, fixing leaky toilets, and all the other chores that go with ownership. Not only do I hate doing these things, I find it stressful hiring people to do them for me. In our quiet mixed-age rental complex I can relax because everything is done for me.
Nick Radesca
It’s funny, when people first learn that my wife and I live in a rental apartment, the conversation usually becomes a little strained as they tactfully fish for the disastrous circumstance that caused our downfall from home ownership. After all there are only two kinds of people - those who own their home and those who want to. Right? Wrong!
Since we moved into our current home three years ago, where I dock my boat in its private marina, I’ve met young people who say they prefer renting and seniors, who previously owned a home, that say they would never ever buy another again. In addition to rental living being easier, these seniors realize that when the time comes it will be much simpler for their families to settle their affairs compared to the added complexities when a house is involved.
While it makes sense for families needing lots of space to own a home, once empty-nesting is reached, I’d like those people, and particularly seniors, who find home ownership burdensome to know that renting can be a sensible choice–a choice to be proud of.
December 29th, 2009 at 11:37 pm
This is a nice option to have. Renting, who would have thought the benefits could outweigh the difficulties! Great blog post… I am sure a lot of people will investigate their housing options regarding renting. When there is a need for in-apartment/rented place care such as home help or home nursing, visit: http://www.GeriCareFinder.com
If renting, or buying is not in your retirement’s future, choose a nice retirement community. To find places in your area, visit: http://www.GeriCareFinder.com
December 31st, 2009 at 3:12 pm
The advice on renting was valuable and thought-provoking. It actually makes sense, although it goes against all the instincts you develop growing up in America. Thanks.