So, you’ve decided to settle down and move into a retirement home in the Niagara Region. Congratulations! This is the start of a new and exciting chapter in your life. But before you can start living you life to the fullest, one big decision remains: should you chose a senior living place to buy or rent?
There are several factors to consider whether buying or renting your retirement living space. Regardless of the end result, most choices involve a form of downsizing. The available space may play a role in the decision of where to live and when. Understanding the pros and cons of renting vs. buying, however, may help narrow down your choice.
Advantages and Disadvantages of Buying and Renting a Home for Retirement
Senior Living Retirement
-Own equity in a valuable asset
- Have a valuable asset to pass down to the next generation
- Have your home exactly the way you want
- Increase personal wealth
- Use the property without any restrictions
- Get the opportunity to save money for the long-term
- If you decide to sell, you can earn a profit off the sale
- It becom
- There is no long-term commitment
- Lower initial cost
- Moving out is easier as responsibilities are less
- The maintenance responsibility belongs to the owner
- Renting allows for diversification of investments
- Less maintenance and upkeep
- Relocate closer to amenities
- Taxes and insurance are additional costs - There is a down payment to be made - Maintenance and upkeep - Risk of not making any profit through resale
- You cannot do any property changes without the consent of the owner
- There are no forced savings for the renter
- No asset or equity
- Risk of rent increases
- Loss of savings
Renting vs. Buying: How Do You Decide?
Now that you’ve seen the advantages and disadvantages of buying vs. renting, how do you decide which is better? While it depends on your current and future objectives, creating a specific list of your options will lead to the best decision for you.
What Are Your Goals?
Knowing what your attainable goals are in retirement living can help. Why are you leaving your home for another? Perhaps your home has too many stairs that have become unmanageable. Keep these reasons in mind when looking for a new residence.
If you are downsizing to reduce the maintenance and upkeep of owning a home, renting may be better than buying a smaller house that still requires care.
What Is Your Time Frame?
Another important aspect is the time frame you are working with, in terms of the length of time between the sale of your home and finding the right living solution. As the housing market fluctuates, pinpointing the perfect time to get the most value out of your home and buying at a lower price is a tricky slope.
For example, if your house sells quickly, you may not have time to perform a thorough search for another home to buy or to rent. You may need to rent while you look for a place to buy or you may decide to rent permanently.
What Is Your Budget?
Money makes the world go around and it may be the deciding factor in your retirement living. Before deciding on a retirement space, take a closer look at your financial state.
Gather all of the information on your assets, income, and debts that you have procured or may accrue in the near future. These details are needed to total your debt-to-income ratio, a key aspect of the buying and renting customs.
Also Read : Average Cost Of A Retirement Home In Welland
What Are Your Liquidity Needs?
The state of your finances will help you discover your liquidity needs. Once you have sold your current home, where does this leave you in terms of financial benefits?
Most people retire with the income of a company and/or government pension to depend on. While renting a living space can free you of dealing with legal paperwork and the housing market, it may also leave you without many options to fall back on.
Book at Tour at The Grand Canal Retirement Residence
Still not sure whether buying or renting is better for you? Come talk to the knowledgeable and friendly team at The Grand Canal Retirement Residence. Book a tour and see why we provide the best options for senior living.