Although it would appear to be sensible to live in your own home when you retire there are many reasons why renting may be a better option.
Most of these involve making an early move to downsize from a large multi-bedroom house to a smaller fat or apartment.
Looking after a large yard may become a chore as you get older.
Similarly house maintenance can be very expensive and hard to do as people get older. In some cases it is the owner's responsibility to maintain and do the routine repairs to plumbing and kitchen appliances such as stoves, hot water systems, heating and cooling.
These benefits are offset by the cost of renting, but if you sell you house you can invest the money and use the interest or dividend from the investments to pay the mortgage.
Below are some of the benefits of Renting when you retire:
When you sell your home you can use the funds to boost your retirement capital used for investment. This could boost your income over and above the funds need to pay the rent. In the long run when everything is taken into account, including the use of the fund tied up in your house it may costs less to rent than it does to live in your own home. The maintenance costs are reduced, and someone else does then for you. You don't have to pay property taxes. Sometimes the utilities and items such as stoves, heaters, coolers and hot water systems are maintained by the owner of the property you rent.
Once the children move out of the family home, it will probably be too large for a husband and wife. many people make the mistake of staying in a house, which is too big for them. This can be very expensive to heat and cool and maintaining the garden, lawn and outdoor areas can become a chore if you want to travel. A smaller property is much easier and cheaper to maintain.
You could sell your family home and buy a smaller flat of apartment nearby to deal with the size issue. But doing this once can be very stressful and it is much harder to do several times. Renting provides much greater flexibility. It may also be feasible to rent in a trendy new part of town which would be too expensive to buy into. When you retire the entire set of things you need and want changes. You may no longer need to be close to schools and transport. You may want to be closer to entertainment and recreation facilities. Often making a move may save a lot on living costs.
For most rental properties it is the landlord's who has to maintain the property. This can include the lawns and gardens the exterior and interior of the building in terms of painting and repairs. If something goes wrong you can call the agent and they will send some one around to fix it at the landlord's expense. This can apply to many of the most expensive appliances in the house, to replace and maintain such as the heating, cooling, hot water system stove and in some cases other appliance. The landlord also has to pay for insurance.
The family home is probably old and will need a lot of maintenance just when you don't want the burden of doing the repairs or the extra cost of getting the repairs done professionally. It is much easier to simply call the agent or landlord and submit a maintenance or repair request."
Making a move to a rental property can mean that you can walk to all the facilities you need. There is more flexibility as well as you can rent one place for a year and then move to another place as your needs and desires change. As you get older you may want to drive less and rent somewhere close to public transportation or in walking distance to the major amenities.
This can be important if you want to travel. A rental property is likely to be much more secure than you own home. This applies to personal safety and vehicle security as well.
Retirement should be a great opportunity to move closer to your children and their families. Often their situations are likely to be much more volatile than your own. Renting offers greater flexibility. If you family moves you don't want to be stuck in the family home far away from them. It is expensive and complicated to sell up and but another place close to them, especially if they move several times.
Renting means you are much more flexible to adapt to the changes in your lives as you get older. You can move to experience new locations or varied lifestyle without being tied-down by long-term commitments. Sometimes circumstances change including annoying neighbours and development in the neighborhood which may not suit you. It is much easier to move when you rent, especially as you tend to downsize your belongings each time you move. "
Retirees can select rental apartments with amenities they need as the get older. This may mean not having stairs, or multi-levels. It may mean other things you need to help you lived independently for as long as possible. This includes rental places designed for older people. Many of these senior communities offer social activities and the chance to make friends.