Renting or buying home you intend to retire in

Should you buy or rent in retirement? These five questions will help you figure out which one will work best for you:

1. Do you want to lock in your housing costs, or can you afford to pay escalating rents?

When you buy, you lock in the biggest part of your housing costs. You will still face rising property taxes, utility bills and other costs, but at least your mortgage principal and interest costs will not rise if you buy with a fixed-rate mortgage.

2. How certain are you about this location?

To be sure you have the best shot at recouping your purchase and selling costs, buying makes the most sense when you are sure you are going to live in a home for at least five years. That said, if you are buying in a popular area and decide to move, you may be able to turn your retirement home into a rental property instead of selling.

4. Do you have steady retirement income?

If your income in retirement is going to rise and fall, then you may need to vary your housing costs by renting what you cannot afford in any given year. Those with steady income know they can afford the fixed housing costs of a long-term mortgage. Paying cash for your retirement home can reduce your ongoing monthly expenses.

5. What is more important to you: Control or repair help?

When you are a renter, when something breaks, you call the landlord to get it fixed. But renters do not have the freedom to customize their homes that owners enjoy. When you are a homeowner, you can customize your home by choosing flooring, decorating as you please or even knocking down walls.

Whether you buy or rent, I can help you find a great home to retire in. Do not hesitate to call or email us today.

Stock image / Fotolia Buying a house in one’s older years, as opposed to renting, has its pluses and drawbacks.

Attorney Robert A. Scalise Jr.