U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-03-2010, 08:31 PM
 
2,377 posts, read 4,916,008 times
Reputation: 1699

Advertisements

Would it be more advantageous to sell my present home (it's paid off) and rent in a 55+ apt. or buy a home to retire in? This is not something I have to do right away.. I can wait a few years where I am till home prices go up again. But I would eventually like to live in a warmer climate and not have to deal with home maintenance problems.
Reply With Quote Quick reply to this message

 
Old 02-04-2010, 12:52 AM
 
Location: Florida
4,570 posts, read 6,165,876 times
Reputation: 7682
Trudy, the "paid-off house" part of your situation sounds really great. I wish I could have that....it would certainly feel more secure in this economy. If you do decide to sell, waiting until home prices go up may not make too much sense, because you'll be paying more for whatever you buy. There are some great deals in FL, AZ and other warm-weather destinations right now. If you were going to buy in an over-55, I'd make sure it's an established community with minimal foreclosures and a good financial situation (condo fees being paid, adequate reserve funds, no looming large assessments, etc.). I wouldn't rent, unless you want to just "try out" a community before moving there permanently. Being mortgage- and rent-free sounds like an ideal situation going into retirement. Just my suggestions....but I'm no financial adviser, so take it for what it's worth, LOL!
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 08:29 AM
 
Location: Tennessee
1,362 posts, read 3,851,588 times
Reputation: 795
Renting for 6 months, especially during the hotter weather in that area, might be a good idea to make sure it is your ideal retirement spot. If you buy and find out you made a mistake, then you are stuck selling another house or living where you don't want to.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 08:54 AM
 
13,515 posts, read 14,736,565 times
Reputation: 37885
Quote:
Originally Posted by 46Barb View Post
Renting for 6 months, especially during the hotter weather in that area, might be a good idea to make sure it is your ideal retirement spot. If you buy and find out you made a mistake, then you are stuck selling another house or living where you don't want to.
Amen. Spent five weeks in a place I had thought might well be a great place to end my days..............hated it!!! And gratefully fled back to where I came from.

And homes in warm climates have their own special maintenance problems, so what you escape in heating maintenance costs you may well make up for in control of fungus, rot, ants, termites, roaches, etc. in a warm climate home.

It is wise to hasten slowly.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 11:23 AM
 
2,377 posts, read 4,916,008 times
Reputation: 1699
Thanks... I'm pretty familiar with Florida...familiar enough to know that summer would be intolerable for us!!! And I can't imagine anyone just moving without checking out the area first...I was just wondering if using the $$ from selling my house to pay rent would be better than buying? Guess it's 6 of 1 and 1/2 dozen of the other At least by renting, you could always move alot easier than having to sell another house.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 11:25 AM
 
Location: WA
5,446 posts, read 21,754,794 times
Reputation: 6105
Generally it is cheaper to rent when all costs are considered... but usually it is more comfortable to have the control as an owner. Other considerations are the flexibility to move you have as a renter although the type of properties available to rent is more narrow than what is for sale.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 01:03 PM
 
75,685 posts, read 75,072,635 times
Reputation: 52988
long term your costs are lower buying , however if you invest the down payment money and have the discipline to invest what you save by renting in the early years then you can have a higher income to go along with the higher costs long term renting.


its really up to what you want
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 04:39 PM
 
Location: WA
5,446 posts, read 21,754,794 times
Reputation: 6105
Quote:
Originally Posted by mathjak107 View Post
long term your costs are lower buying , however if you invest the down payment money and have the discipline to invest what you save by renting in the early years then you can have a higher income to go along with the higher costs long term renting.


its really up to what you want
How long a term?... Rents for comparable properties are usually lower than PITI plus maintenance, repairs, and depreciation.

I have owned numerous houses including one that more than doubled in value and I am sure I would have saved money by renting comparable properties.

I know it varies in different parts of the country and there are exceptions to any generalization. Inflation and changing property value trends make it hard to come up with a rule, but this is a retirement forum so I would guess a timeline of twenty years or less should be used.

IMO renting is cheaper although I did purchase my retirement home.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 05:48 PM
 
75,685 posts, read 75,072,635 times
Reputation: 52988
depends on the area... here in nyc the crossover point is around 10 years at 3% rent increases. then renting seems to cost more . but thats not considering renovations, repairs and all the expenses that go along with a house.

the problem at least from a financial point is that most folks dont have the discipline or the the knowledge or the guts to be good successful long term investors in other asset classes if they rent.

they will generally end up taking that extra dough and buying a better car or move to a nicer area in a bigger place.

there is no question for me renting and investing would have left me with a far greater pile of money .

we rent right now in an apartment in bayside queens but off and on owned lots of property thru our lives. and recently bought a retirement home in the pocono mountains of pa.

our plan is to retire in a year or so and spend april to november in pa and then rent somewhere different every winter where the weather is warmer.
Reply With Quote Quick reply to this message
 
Old 02-04-2010, 06:46 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
23,797 posts, read 41,447,473 times
Reputation: 25650
OP might consider different options based on stated criteria, (relocation, maint); but renting would certainly be one of the options, at least untill finding the 'right spot'.

Townhouse, row house, condo, fractional, and co-op are all viable 'ownership' options, once the right spot is found, but... I'm with Cdelena in considering rents to be more economical.

Of course, one has to fully understand the whole pie, and part of that may include home ownership as a potential long-term inflation hedge. The 'home' does not have to be a maint or accessibility headache.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top