Why are seniors choosing to rent in record numbers?
Because it’s just easier than owning a home.
Not convinced? Consider this: Renters don’t pay property taxes; they don’t have to worry about lawn maintenance; and they don’t have to do expensive home repairs, such as fixing plumbing, roofing, or electrical problems.
These are just a few of the obvious reasons seniors are opting to rent, rather than own the home they live in. Even those who can easily afford to purchase or maintain their homes are deciding to rent instead.
In spite of the convenience of renting, the truth is, it’s not for everyone. In fact, some baby boomers want to remain homeowners and liberate the equity in their homes.
Back in 2008, I helped my mother obtain a reverse mortgage. At the time she wasn’t short on cash, but there was a collapse in housing prices and we believed a further decline was possible. So as a precaution, we wanted to ensure we got equity out of her home and turned it into cash.
She was able to get a reverse mortgage because there was no Financial Assessment litmus back then. Unfortunately, a lot has changed since 2008. In fact, my mother would not qualify for that same loan today. In today’s economic environment, I would advise my mother to sell her house and rent rather than to seek out a reverse mortgage.
Now don’t get me wrong. I’m pro homeownership in the long term. I believe history has shown it to be a good investment over time — even when you consider the boom and bust periods.
The truth is, there is no right choice. It depends on your unique situation and what you feel is most important. Emotions can be tied to home ownership and for some, they carry more weight than financial concerns.
I’ve created a FREE download that offers links to other perspectives and opinions about baby boomers who choose renting over home ownership. Click here to access the download.
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