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Retirees Should Consider Renting a Home

20 Jun 2018

Posted by Joseph Coupal

HHHunt ApartmentsHome ownership has long held an honored position as an integral part of the American dream.

But when retirement time comes, rethinking that dream could be in order. Sometimes renting an apartment is the better bet both financially and in terms of the retiree’s changing lifestyle and health.

When people plan for retirement, they focus on things like how much they have saved, how much Social Security will pay, and whether they have pension. But as you get older, you also need to think about such issues as whether you can keep mowing the lawn or handling other day-to-day chores that homeownership requires. If you must hire someone to do them for you, how much will that eat into what may already be a tight monthly budget?

The truth: There’s no answer that will fit everyone’s situation. So, retirees or those approaching retirement, should weigh their personal pros and cons.

There’s a lot to think about. Should you sell the house you raised your family in and downsize to something more suitable for just the two of you? If you’re planning to move to somewhere else in the country to enjoy your retirement, is it more prudent to buy in that new location, or is leasing the way to go to give you more flexibility if it doesn’t work out?

Some things retirees should think about as they ponder the own verses rent question include:

Maintenance issues. When you own a home, every leaky faucet, electrical problem or faulty appliance is yours to handle as best you can. If you can do it yourself, great; but often, these household repairs mean calling in a professional at a sometimes-exorbitant cost. When you rent, it’s up to the landlord or the property management company to take care of the repairs.

Mobility. Selling a house can be a long and complicated process, and you never know what the market might be like when the time arrives. Whereas breaking a lease is much simpler. If your children are scattered all over the country, you may want to move closer to one of them. Also, if your health takes a turn for the worse, selling a home can be a significant burden on your family.

The inheritance. For many people, a house is the most valuable asset in their estate and they might want to leave it to their children in the will. Once again, it’s a matter of weighing the pros and cons. Having a home to pass down to the children is a noble gesture, but it is not always feasible.

Before considering whether owning or renting is the right option, it’s essential to review all the intricacies of your situation and decide based on your finances and your overall health and well-being.

For more information on apartments, contact HHHunt.

#HowYouLive

myvalleynews.com

More Baby Boomers are Renting

16 Nov 2017

Posted by Joseph Coupal

HHHunt ApartmentsGone are the days when the rental market was filled with recent college grads who were looking to move in with a few friends in order to save money to one day buy a house.

The demographic of those seeking apartments has changed in a big way.

In fact, the new renters are the parents of the millennial generation.

“We looked at the renter population between 2009 and 2015 by age group, education level and family type. And we found the fastest-growing segment of the country's rental population were those age 55 and older. They increased by 28 percent nationally. The highly-educated renter, holding a bachelor degree or higher, increased by 23 percent nationally," said a spokesperson for Rent Cafe.

You are seeing older couples, empty-nesters, highly educated, who are choosing the renting lifestyle for various reasons.

2.5 MILLION STRONG

On a national level, about 2.5 million households of people age 55 or older joined the renter cohort nationwide between 2009 and 2015, compared to a mere half million new renters under 34, according to the study.

We are seeing more seniors looking to rent as the prices of the traditional empty nest downsizing options -- condos and co-ops on one level -- continue to go up.

They [baby boomers] are looking for low-maintenance, high-convenience, and no stairs to walk. They get all of this, and no unexpected repair and maintenance expenses in rental buildings, with the additional benefit, a fixed monthly housing expense.

NOT ENOUGH RETIREMENT SAVINGS

Many Realtors say part of the issue is many baby boomers failed to sock away enough money for retirement.

The sad reality for baby boomers is the fact that a large segment of this generation has failed to put aside enough money for retirement in their 401(k) or retirement plans.

Unfortunately, social security benefits are not enough to make ends meet. As a result, some are forced to sell their homes in order to lower their living expenses. As the findings note, this is one way that retirees can simplify their lifestyles and expenses.

For more information on renting apartments, contact HHHunt.

#HowYouLive

silive.com

Good Reasons to Rent an Apartment

20 Oct 2016

Posted by Joseph Coupal

There are a lot of questions out there now about renting or buying. If you are in the market for a home, what should you do?

The common opinion is that making a rent payment instead of a mortgage or purchasing is like “throwing the money in the wastebasket.” At some point in time before the recession, homes were incorrectly considered an investment that would “always” go up rather than one that “may” go up.

When you consider all the pros and cons, buying may not be the best choice in all situations.

Avoid big money commitments: Usually, one can rent for the same or less than the cost of buying and they don’t have to come up with large fees like closing costs or taxes. Also, if a mortgage is taken out, the first several years of payment are dedicated mostly to the interest, not the principal.

Many rental communities cover the costs of maintenance, landscaping and general repairs that a buyer would be responsible for themselves. A renter’s biggest expenditures are often moving and furnishings.

Flexibility: Since renting requires no substantial long-term investment, the renter has choices more often about their living situation. Moving from a bought home involves planning and costs such as commissions to real estate brokers. Also, if a home buyer wanted to sell, they could be at the mercy of the markets or not be able to sell their home at a profit.

If house values decline, the worst scenario for a renter is only paying until their lease expires. People who rent can’t place a value on having that freedom.

Investment Considerations: Large down payments or home purchases can make it difficult for home buyers to maintain savings and investments specified for retirement and related activities.

In some cases, the money saved by not buying could outweigh the money earned on a purchased home, depending on the investment and property appreciation. For a home buyer, the risk is higher if an unexpected sickness or injury occurs causing financial strain.

The rent vs. buy decision is more than comparing lease and mortgage payments. The reality is there are pluses and minuses to each option.

For more information on apartments, contact HHHunt.

#HowYouLive
Original article – Bradenton.com

Reduce Housing Costs When You Retire

06 Jul 2016

Posted by Joseph Coupal

Housing is likely to be your biggest retirement expense. But there are a variety of ways to pay less for housing in retirement. Here are a couple of ideas of what you can do to bring down your housing costs after you retire.

Downsize. Once your children grow up, you no longer need multiple bedrooms or an expansive yard. And you may not want to take care of a large property that only one or two people use. Downsizing to an apartment can add money to your nest egg and free up the time you would have spent mowing a large lawn and cleaning several stories of rooms. Downsizing could add money to your nest egg, even if you spend $50,000 on selling and moving costs and home improvements. After their kids move out, many retirees downsize their home, and then they put the surplus into an investment account so that it can start growing. This reduces their monthly living expenses, their utilities, their property taxes, and they’re really at a point in their life when they don’t want to maintain a larger home. You may also be able to generate some extra cash by selling off the furniture and appliances from your former home.

Relocate. Retirees don’t need to live in expensive cities that are close to their jobs or in high-cost suburbs with good school districts. You are finally free to live anywhere in the world that has the entertainment options and amenities you desire. You might choose to live near the beach or in a place where you can play golf every day, or you could relocate to a sleepy college town with a low cost of living. If you move to a place where housing costs significantly less than where you live now, you can use the extra cash to help pay for your retirement expenses.

Become a renter. Homeownership can be expensive and a lot of work, especially if you live in an older home in constant need of repairs. Becoming a renter in retirement frees up the equity in your home to use for living expenses, might allow you to relocate closer to the city center where you could walk to shops and local attractions and makes someone else responsible for the major upkeep of the property. To sell your home and then rent gives you a nice cash infusion.

For more information on 2 bedroom apartments, contact HHHunt.

#HowYouLive
US News – Money


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