Downsizing your home can give older adults options and opportunities. Whether it is a financial necessity, due to a health condition or just a matter of convenience, more and more older adults are downsizing.
One of the questions many people have when they are thinking about downsizing is, “Should I rent or should I buy a home?”
Downsizing your home vs. renting
Many people today are choosing aging in place over independent living. Many times, downsizing is part of the plan.
If that is you, you most likely have questions about downsizing your home. And, if you’re trying to decide whether owning or renting makes more sense, here are a few insights that may help your decision.
The effects of home ownership on finances
There are plenty of retired folks who have realized that home ownership isn’t always what it’s cracked up to be after retirement. Not only do you have to continue with maintenance and improvements, it also can anchor you to where you are. (Not to mention, keep funds tied up in equity.)
According to BankRate, moving to a smaller home could help you save on expenses, such as mortgage payments, taxes, maintenance and energy bills.
Better selection when renting
Though it goes against the grain of what a lot of folks are taught when they’re young, owning a home when you’re older doesn’t always make the best sense. Especially, when it comes to getting what you want or need much later.
For instance, in many cities, the homes closest to the most services are rental properties in-town. Or, home maintenance expenses can add up over time, reducing how appealing it is to own versus rent.
More for your money
The fact is that mortgage payments are regularly higher than rent. That means if you choose renting, you may have more money to play with every month.
With that extra money, you could invest more or use the extra money to do some things you’ve been putting off. That could include travel, hobbies or even some necessities that you didn’t have the funds for, before.
Renting can bring a needed change
Many folks don’t really go into a move thinking they want to change communities. But, since you’re likely to find the style and size in a nearby town (as well as services you may need later), with that comes a new community.
Better (or different) dining options, entertainment options that are more convenient and closer shopping are just a few things that could be different.
If you’d like a professional to work with you during your downsizing, just give us a call. We’ve been helping our neighbors in the Quad-Cities for years transition to new homes and lifestyles.