For those retiring (-ed) on a shoestring, do you own or rent? (retiree, separate)
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I've rented all my life and sometimes I think one of the big mistakes I made was not buying a place during the 90's when real estate prices went way down...a friend of mine did that and now she's retired with a mortage free condo (basically an apartment). Even with taxes and HOA fees, it still doesn't even come close to what I pay in rent ...
Quote:
Originally Posted by xz2y
I do think it comes down to a lifestyle choice. Houses are no longer guaranteed to increase in value over time, as 2008 showed all of us.
I have no regrets about buying my house a dozen years ago. I am well aware that some people's homes are "under water" and yes, there is no absolute guarantee that your home will increase in value over time, but for the majority of us it is a good long term investment. I believe if you do your homework and research the neighborhood, make sure the house is fully inspected, and you know you plan on owning it for a good length of time (not necessarily living in it) it will build equity. My home - and NOT my 401 (k) nor my IRA - is what is going to permit me to have a good retirement and the ability to retire at 62 (not 66) just four years from now.
If you rent your whole life, what do you have to show for the thousands and tens of thousands of dollars you paid your landlord? All you did was help him pay off his mortgage!
You have an income problem and I forget how many years you said you have done this, but it is blindingly obvious that you have no interest in fixing it.
Can't afford to go back to school to get marketable skills, plus age probably a stopper if I acquired a skill, e.g. I've never heard of an entry level accountant getting hired at my age.
Can't afford to go back to school to get marketable skills, plus age probably a stopper if I acquired a skill, e.g. I've never heard of an entry level accountant getting hired at my age.
My local community college has a course called the Career Skills Program. Anyone who wants to better themselves through education can take the class. I did. As a Senior it was paid for, as were the books, etc.. All ages can take the classes. It was mostly a class for updating computer skills and learning new things but it also covered 'personal stuff'. How to gain confidence, etc.. It was a fun course to take and even though I didn't use it to make a career change I don't regret it and recommend it all the time. After it was over, and I got my certificate, I was offered another free class and I took that too.
Sometimes I think that seniors finding jobs isn't so much that employers don't want us because of our age but they might think we'd just get trained and then decide to fully retire. Oh yes, I know that age discrimination is alive and well because I've experienced it but how do you 'prove it'?
Truth is, you never know what you can do till you DO it. And even if a few college courses didn't change your life they can be fun and lead to other things. They are also great for networking!
Interesting thread and something I've thought about a LOT the last couple of years.
I've owned, and sold, four homes over the years. I LOVED being a homeowner just because it was MINE and I could do what I pleased with it. I was very lucky that none of them cost a lot of money for upkeep and maintenance. My only regret about my divorce is that we sold the house prior to the divorce but if I'd kept it it would be nearly paid off by now...if not completely. Payments of only $425 month! Up until now I have never paid rent that cheap. That house just happens to be up for sale again right now. I checked it out on Trulia. I paid $45,000 for it in 1988 and they are asking $136,000.
By necessity I've been renting for the past 15 years but for the past year I have seriously considered buying another home. I would, to the best of my ability, make sure there were no major problems and would prefer something that only needs cosmetic work done. However, there are things that make me doubt I'd be able to do it. My age, my income, lack of dollars for a good down payment, closing costs, etc.. Just for starters. It's sad because, right now, there are some REALLY good deals here. My mom is rejecting this idea as well. She doesn't want me to move! She's managed to find something 'wrong' with every house I've shown her so far. She isn't putting a guilt trip on me or anything like that but she likes having me around. Not two blocks away.
Yes, with all the attendant 'problems' and costs that go along with home ownership, I would still like to own my own home again.
I have owned my own home since the late '70s - made many sacrifices to get my first one - especially considering I was young and had other desires that had to be nixed. I consider this to be the best decisions of my life.
I've been living on a shoestring so I can get this one finally paid off - very very soon that will happen and then it will be mine - all mine.
Unless you get a ARM mortgage (a definite no no), you know what your payments will be for as long as you live there. Taxes & ins do go up - but nothing like rent. Think about how much rent has increased in 18 years. When I sell I will walk away with a nice check so I can buy another one. I don't expect to see the same investment increase in the next house as I will see in this one.
And all those things are factored into the rent you pay if you decide not to "own." I'll take home ownership and the freedom to make changes as I see fit over being at the whim of a landlord/owner/corporate entity any day. It helps that to us, this is our home, not an investment.
Thank you,add to this, someday you will have something to leave to loved ones, hopefully and yes, it is yours, to do with as you please; paint the walls black brick in your front yard, put a bath tub in the middle of the living room, whatever: it is yours, not someone else's and the payment stays pretty much the same, with slight increases in taxes etc, but it isn't like what can happen with rent increases.
I am not saying everyone should own, some people really should not, but for most of us it beats paying someone else's mortgage.
My local community college has a course called the Career Skills Program. Anyone who wants to better themselves through education can take the class. I did. As a Senior it was paid for, as were the books, etc.. All ages can take the classes. It was mostly a class for updating computer skills and learning new things but it also covered 'personal stuff'. How to gain confidence, etc.. It was a fun course to take and even though I didn't use it to make a career change I don't regret it and recommend it all the time. After it was over, and I got my certificate, I was offered another free class and I took that too.
Sometimes I think that seniors finding jobs isn't so much that employers don't want us because of our age but they might think we'd just get trained and then decide to fully retire. Oh yes, I know that age discrimination is alive and well because I've experienced it but how do you 'prove it'?
Truth is, you never know what you can do till you DO it. And even if a few college courses didn't change your life they can be fun and lead to other things. They are also great for networking!
anyone can return to school or get additional training to better themselves. It isn't easy, but it can be done. As for seniors and those over say, 50, finding jobs, if those people are willing to work as independent contractors with out a lot of perks, they can get something. i know, both hubby and I have done this.
What you ask has a lot to do with location. Transportation cost is closely linked to housing. If you live in a rural area and own or rent, you must add your auto costs in; if you own your own or rent close in to town, you are much better off.
A rental in-town with a rent higher than the total cost to own in the suburbs or rural is, imo, more cost effective. What you pay more in rent is more than made up for by the cost of rising taxes, house insurance, maintenance, and transportation.
The only reason to own is if you must have privacy and control, and/or if you think that the repairs and upgrades you put into an owned home are going to give you a financial return.
The only problem with rents is that they're not fixed; they go up over time and sometimes dramatically depending on what the landlord wants to charge.
Perhaps the best is to own the smallest house you can find, and have a paid off mortgage....and someone in the family willing to do some repairs.
From a financial standpoint, at my age 63 I would rather rent. But there are other issues, mainly that I can't stand a lot of noise. But that's another topic.
Location isb't what it was in tavel expense unless very rural now days.Actauly I moved further out fro nearby city enge fro where ai lived i the burbs before, I am much closer now that when I lived i burnbs to best shppoig areas and restarurants now. The city center itself is pretty much dead like many areas of the coutnry.Basically the business have followed the people outward. I perhaps actually enter the nearby city perhaps three time per year. because evryhtig I need is located in the outer aprts of the sub burbs nearby.
anyone can return to school or get additional training to better themselves. It isn't easy, but it can be done. As for seniors and those over say, 50, finding jobs, if those people are willing to work as independent contractors with out a lot of perks, they can get something. i know, both hubby and I have done this.
Nita
I did that too. Was an independent health care contractor with a local in home health care company. I was in my early to mid 60s when I did it. No, it's not always easy but it can be fun and learning new things should never get old.
I am almost retired ..single , empty nester..may work a few more years /may not..
I am selling my large house and so excited about etting out from under the yard /pool & house upkeep that is almost a full time job..( may have a contract offer tomorrow !)
My thoughts were to find a small , well maintained house & pay cash from equity..but...
I am considering renting in a nice apartment complex and investing the $.
Whe I factor in lost investment opportunity I can't work the math to show buying being a financial advantage.
For me renting (at least for a while) will be a huge load off my shoulders of house & yard care..
I want the flexibility to move if I want to also...
No question here, just saying for me I am excited about renting for awhile..
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