Should Baby Boomers Buy or Rent After Selling Their Homes?
Are you a baby boomer with years of history in your current house and a desire for a change? If you're contemplating selling your home, you're faced with numerous considerations. Will you relocate to a different state or remain in the vicinity? Is downsizing in your plans, or do you crave more space for family and friends? However, one of the most critical decisions you'll make revolves around whether to purchase your next home or opt for renting.
The choice between buying and renting hinges on your current circumstances and future aspirations. Here are two pivotal factors to aid your decision-making process.
Expect Rents to Keep Rising
Rental costs have exhibited consistent upward trends over the years. Opting to rent comes with the risk of facing rent increases each time you renew your lease. Coping with higher rental expenses on an annual basis might not align with your financial goals.
Conversely, purchasing a home with a fixed-rate mortgage can bring stability to your monthly housing payments. This means locking in your payment amount for the entirety of your home loan. As noted by Freddie Mac, "Homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan." This predictability provides peace of mind even as other life costs fluctuate.
Owning Your Home Offers Unique Benefits
AARP suggests that buying your next home stands as a more advantageous long-term strategy compared to renting. The benefits of homeownership, some of which are highlighted below, can help guide your decision:
Savings for the Future: Owning your home can serve as a means to build equity and generational wealth, potentially enhancing the lives of your loved ones.
Freedom from Monthly Mortgage Payments: If you have enough equity to purchase your next home outright, you may eliminate monthly mortgage payments. While property taxes and maintenance costs may persist, the absence of a monthly mortgage payment can be a significant relief.
Ease of Aging in Place: Homeownership allows you the freedom to make modifications and updates that can simplify everyday life as your needs evolve.
If you're a baby boomer pondering whether to buy or rent your next home, it's wise to seek guidance. Given the continuous rise in rental costs and the multitude of benefits that homeownership affords, considering the purchase of your next home may be a prudent choice. Let's connect to explore the possibilities that align with your unique circumstances and aspirations.