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Thinking about selling my 4br 2.5 bath house that is paid off and moving into a $1,200 month apartment. I am widowed, live alone, and getting long of tooth and starting to dread the maintenance needed to keep the house in good shape.
Right now I pay $2,200.00 in RE tax and $500 home owners insurance. I will probably walk away with maybe $225,000 after closing. Maybe more, maybe less. Anyway does it make any sense to walk away from a rent free home and rent with these numbers. Of course a lot has to do with getting out from under responsibilities I no longer want but I don't want to make a totally stupid decision. Any thoughts
ps: I have a pretty good retirement income ....$4,500 if that makes a difference
I am widowed, live alone, and getting long of tooth
and starting to dread the maintenance needed to keep the house in good shape.
Thinking about selling my 4br 2.5 bath house that is paid off and moving into a ...
An entirely appropriate consideration.
Quote:
...does it make any sense to walk away from a rent free home...
Of course. The issue is what you do with the net proceeds from the sale.
If you invest it for income (a different discussion as to how)...
and add in what you pay for property tax and insurance and upkeep...
you could have a more than adequate rent budget.
Depending on WHERE you would live...
your accountant might advise you to buy a condo instead.
Thinking about selling my 4br 2.5 bath house that is paid off and moving into a $1,200 month apartment. I am widowed, live alone, and getting long of tooth and starting to dread the maintenance needed to keep the house in good shape.
Right now I pay $2,200.00 in RE tax and $500 home owners insurance. I will probably walk away with maybe $225,000 after closing. Maybe more, maybe less. Anyway does it make any sense to walk away from a rent free home and rent with these numbers. Of course a lot has to do with getting out from under responsibilities I no longer want but I don't want to make a totally stupid decision. Any thoughts
ps: I have a pretty good retirement income ....$4,500 if that makes a difference
Renting never makes sense in my opinion unless you have no choice like myself. You may not like responsibilities of your home but the biggest positive is IT'S YOUR HOME you make the rules and call the shots and do as you please with it. Now you are at the mercy of a landlord and the rules etc and no freedom.
To me the american dream is to live free and your home is your castle.
When the bubble burst an housing prices were down, renting made a great deal of sense. Now that the market is recovering and housing is again appreciating, renting makes less (financial) sense. Also, if you are single and getting older, renting may not offer you the privacy and security you are used to.
You might want to consider buying an upscale condo. This will free you from the ongoing maintenance and upkeep issues, while maintaining your privacy and security ... and often giving you amenities and location unavailable in SFH's or apartments. (We moved from a lifetime of SFH's to Condos in about 2002 - and have never regretted it, but would NOT be interested in a typical apartment).
You have a paid off house, do not become a renter you have the perfect scenario right now. If anything sell that home and downsize, but do not rent and throw money away like that. Some areas allow you to take your tax base over too, check with you local realtor or tax professional.
To me, it makes sense. I can understand wanting to get rid of the upkeep aspect of owning.
However, when you rent, you are stuck with neighbors. Often inconsiderate neighbors.
As others mentioned, a condo could be a good compromise. You'd get rid of all the exterior maintenance. I know when I lived in NC, there were a lot of townhouse style condos popping up everywhere. Less attached neighbors than an apartment. Plus, owners tend to be more considerate of neighbors. Around here, there are a bunch of condo developments with completely detached condos. I lived in the Lake Norman area, and I don't remember anything like that in NC, but that doesn't mean they don't exist in your area.
rent goes up.
i paid $1050 here 7 years ago. now i pay $1550. of course i guess you can move every couple of years to get a cheaper place, but thats annoying.
neighbors always change too. my current neighbors are cool. my last neighbors were always yelling and playing loud music. then there was the neighbors with the loud dogs that would bark all the time...something to keep in mind when moving into an apartment if you are used to quiet.
might make sense to downsize to a smaller house, townhouse or condo?
Location: Stuck on the East Coast, hoping to head West
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If I'm single when I'm older, I will definitely rent.
Rent may go up, but so does home ownership costs. My taxes and insurance have gone up every year. Maintenance gets more expensive, particularly when you physically can't do a lot of the work yourself.
As far as having terrible neighbors, try owning a house and having horrid neighbors.
Renting never makes sense in my opinion unless you have no choice like myself. You may not like responsibilities of your home but the biggest positive is IT'S YOUR HOME you make the rules and call the shots and do as you please with it. Now you are at the mercy of a landlord and the rules etc and no freedom.
To me the american dream is to live free and your home is your castle.
THe American dream has nothing to do with dollars, it takes an immigrant to inform Americans.
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