I am a teacher & about 10 years away from retiring. I wonder what the value of purchasing a home over renting in retirement would be. I currently rent but would be willing to think about buying a simple home. What I don't want to do is move to a 55 and over community; I'd rather live in a regular neighborhood with all age groups. Any thoughts?
I moved your post to the Home topic, as I think this is the best place for you to get responses on this subject. I also invite you to read through some of the other discussions within the Real Estate category, as many others have asked similar questions.
I agree with your personal preference to live in a mixed (ages) community. Ours was created near 1970 (soon after) and we were age forty when we purchased (single family, three levels) in the summer, 1984. We have been here about three decades. Our one offspring had just finished seventh grade. By 1993 he graduated from university. We can walk to the home of our two grandchildren in about forty minutes (very close).
Whatever you do about a house, carefully consider how much debt for how long you will carry into retirement. We feel much more comfortable without any mortgage.
This is discussed frequently - about not having a mortgage. Well, it depends - if the house was bought quite some time ago, the mortgage can be quite handle-able. It also depends on where you are - there will be monthly housing costs of some kind everywhere. - in fact with an old mortgage in the Northeast, taxes and insurance can out-strip principal and interest. At today's interest rates, a 200K 30 year mortgage can be under $ 1K a month. Not bad when renting a studio apartment in NYC can be 3K a month.
We have lived in the same home for about 25 years, and it is in an area we like and we have no mortgage. Having no mortgage also means we have home equity we could tap into if needed to help with retirement income. Home ownership also comes with the repair and maintenance responsibilities. I am enough of a DIY that I have been able to take care of a lot of the routine repair and maintenance myself. Will come a time I'm sure when I will not longer be able to do these things. Also gardening is one of my hobbies, so taking care of the yard and flowers and shrubs is something I enjoy and keeps me active. As a result owning our home has worked well for us.
I resemble your remarks (intended as a positive comment).
All of these comments are great. However, you have to decide what is best for you. If you are a homeowner without a mortgage then the burden is much less. For me, I want to look into some of the 55+ Adult communities with the option of renting. I personally do not want to add any more debt in my retirement years, especially a mortgage. With all of the maintenance that goes along with owning a property, I would rather pay the fees and not have to worry about the maintenance.
Take your time and do your homework.
Please be careful. If you are a single homeowner who is retiring in 10 years, there are many costs with the
upkeep of the house. Plumbing, painting, roofing, heater/air-conditioner, lawn, taxes, insurance, etc. Sometimes as
folks get older, renting is the solution.
sufficient "word to the wise"
Purchasing and moving into a new condo, in an over 55 community has many advantages for homebodies (Personally I prefer renting, but if owning is your druthers, then so be it). A new place will need fewer unforeseen repairs, will be better insulated from hot and cold, will have more efficient new appliances, and you can even get a service contract for peace of mind, regarding your heating/AC.
Also you will not need to cut grass or shovel snow, nor clean gutters. All this is important as we reach old age. The over 55 community means you will find that all your neighbors essentially share your view on life, there will be a community center with gym/swimming pool most likely, and you will find socializing is the norm rather than the exception.
An alternative would be to RENT a condo in an apartment complex. There you have the same social contacts, perhaps a little less personal, but you will enjoy a gym/swimming pool, and can find someone your age to socialize with. My brother is doing the former, I am doing the latter, and we are both glad we found the right solution for our later year aspirations.
Thank you so much for sharing this information with me. You have given me some very important matters to consider. Personally, I am renting now and I am working on keeping it this way. I just need to find an affordable condo for me. Yes, I would prefer the over 55 community. I am going to look for a condo to RENT in an apartment complex.
Have a Good Day and Thank you Again for sharing!
with foresight, our only offspring (married) and spouse have retained their 2-bedroom condo (nearby) for possible use by us.
This is great news for you. I have started my search for condos and I will keep the community posted on the outcome.
Have a Good Evening!
Thanks, that is great advice. I do not own now, but am thinking about owning.
We have an elderly friend who sold her long-time SFH in our neighborhood as she wanted to downsize. For five years she lived in a regular apartment building in a neighborhood she liked. Being social and active, she made a lot of friends and was happy there for those years.
But things and people change. What was fine at 80 wasn't so good at 85/going on 86. She moved in late 2012 to a seniors-only residence hotel. All independent living, but there are social activities and an on-site restaurant where the residents can eat (and it's a good restaurant, we've gone a number of times on our own!). There are residents who are in their late 90's still managing on their own, albeit with some personally-paid assistance.
We feel differently about our plans. We're in our 60's, but want to sell our home in the next 5 years and move to a full-service senior facility, or CCRC as they're known. We are getting weary of being homeowners and dealing with endless/recurring issues, and someday we're just not going to want to deal with it any more.
Unlike many we planned for financial risk mitigation in our old age as we have no children and no family members available to rely upon. We have long-term care insurance policies and the disability of one spouse will thus not impoverish the other. Full-service nursing care costs upwards of $8,000/per month in our area, making the cost of our LTCi policies a reasonable cost-value proposition. My MIL (DH is an only child) is already in a full-service facility and with advancing dementia, so we are very glad we did our planning back in our 40's. We made sure she has sufficient funds for her own care, and thus we only need worry about ourselves.
very encouraging how many times folks in this community mention care for others (generally older acquaintances or relatives)
You really do not hear about the assisting others too much. I just want to make a difference.
>>> BoBraxton <email@example.com> 7/2/2014 6:40 PM >>>
BoBraxton replied to the discussion
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Thank you for sharing this story with me. I really do commend you r friend for taking a stand on her housing situation. I am in the process of looking into the 55+ housing community for independent seniors. So my advice at this time is to continue to seek out a plan that is best for you and your husband. So far, I have found these 55+ communities to be expensive, especially if you do not have a home to sell. I have been renting now for the past several years and I am glad that I do not have to worry about all of the maintenance that comes with home ownership. Renting a 2 bedroom house has it responsibilities. I have to worry about snow removal and keeping the grass cut in the front yard. Most of these communities do offer a very social and active community. I want to move into a Independent Living Community for now, because I can still take care of myself. I do understand how you are getting weary of being homeowners.
Personally, I do believe the less you have to worry about as we are aging, the more you can enjoy life with each other. I will keep you posted on my research and I will be glad to share any information regarding these communities.
Some of them are very expensive, and I do not want to accrue that type of debt at this time in my life.
I have a question as to whether anyone who has sold their home that they have lived in for 25 years and then regretted that decision. We are 60 years old. Our children are out of the house now and many people our age are down-sizing and moving into smaller newer communities. We love our neighborhood but are looking at future maintenance on our 25 year old home and all our bedrooms are upstairs. I see the day when we will need to move but I'm not ready now becasue I don't want to leave the security of the place that holds all our memories. Can I get past that and create new memories?
Great question--and one that comes up a lot on the community. I recommend that you read through this discussion thread: Downsizing?, which addresses many of your concerns.
Thank you so much for responding back to me regarding this matter. I am working on some research at this time about downsizing. I will keep you posted on my findings.
I do not own a home at this time. However, you have a lot of memories to hold onto. As for all of the bedrooms being upstairs, both you and your husband may not want to deal with all of the maintenance to goes along with owning a home. Maybe you can consider renting it out to a family member who knows the family history and how much the home means to you.
If not, then you will always have your memories with you even you decide the sell the home.
Moving after years in a place can be difficult for some and not so much for others. We lived in one town for 28 years in two houses less than 1 mile apart. It is a beautiful and desirable place. But the taxes were terrible and the urban area growing old and stressful. We moved to a bigger place on a lot that we could only dream of and could never have afforded in the old town and we put money in our pockets when doing it. We have since blown that excess and some more to boot on the new home.
The spouse took a few years to adjust to the new state, new culture, new people, the new house, etc. Me, I closed and locked the door of the old house and drove off. We did eventually get all of the kids here too which helps. It's up to you. GOOD LUCK!!!
Thank you so much for sharing. You are absolutely right, it can be difficult for some and not so much for others. I am glad to hear that everything has worked out for you and your family.
Bia, I'm with you --
we visited several 55+ communities and considered all the advantages -- but at each one we overheard conversations limited to grandkids and medical issues! I said "Heck NO!" and we moved into an "Urban Traditional" community -- lots are about 1/2 acre or less, there's an HOA, and (most important) a diverse community of different races, nationalities, and ages! It suits us just fine -- Halloween is coming as I write this and I know I'll use up 3-4 big bags of candy. This year I'm dressing as a player for the most-hated team that plays the U of Georgia -- I'll be in a Florida orange jersey and helmet.
At the senior development we were considering, they will have a dance and a cook out for the residents. Clearly, that would suit someone else's preference better than where I am -- and I love my grandkids, but ... local ghosts, gremlins and superheroes are just fine.
We plan to be scooting back from our small vacation "cottage" along the beach in time to welcome the costumed gremlins, ghosts and princesses (in years past our one offspring went out as Sherlock Holmes, another time as a Rubix cube).
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