I am a widow who is retiring this April and selling my home. Would it be better to buy a small home, or rent?
I want to down size since it is just me now.
Such a tricky question! It really depends on what's most important to you. Renting is typically cheaper than owning, which should free up additional cash flow during your retirement years. If you have children/grandchildren and wish to be near them, renting would allow for more choices in property types (apartments/condos/townhomes/single-family homes). Renting also alleviates your responsibility of maintenance, which can be both physically and financially taxing as one ages.
If you value your complete privacy, then buying a small home may be the right choice for you. I would speak with a trusted Realtor who can show you various property types to aid in your decision-making process. There are also numerous financial calculators out there if you just Google "renting versus buying a home."
www.TZGFinancial.com | 02.20.16 @ 15:09
Thanks for the posting/question ...without know your entire financial picture - this is impossible to ask or provide advice on. I would review the options and all the details with whomever is close enough to you that you can ask for some assistance from (relatives / financial advisor / etc.) topics that come into play: assets / monthly costs / life expectancy / debts / income sources all will come into play ....all the best | 02.23.16 @ 20:02
There are so many other questions that go along with your first one! The most important issue is to talk to a CFP (Certified Financial Planner) about your total financial picture and lifestyle. As a rule, your home is the only investment you'll ever have in which you can live. So if you have the cash flow to own something safe and comfortable, you'll be happier doing that. If not, then the safety and income from your investments will be that much more important. Best wishes, Gaylord | 02.24.16 @ 02:06
I'm so sorry for your loss.I lost my husband in 2008 and feel your loss. I'm still working, but the big house on acreage was way to cumbersome for me. Rent for a 3 bedroom 2 bath 1500 square foot house was $1325.00. I bought a small patio home same size in a gated community and my house payment is $891.00. It really depends on if you think there is a possibility in the next few years of staying or moving. I rented until I knew where I wanted to live. Then I purchased. It also matters what your retirement income looks like, what you want retirement to look like, what your Plan B is. I wish you all good things. Good luck and God speed.
| 02.26.16 @ 01:24