Consider The Rent

Consider The Rent

According to a report from Harvard’s Joint Center for Housing Studies, among households with someone 65 or older, 8 in 10 are homeowners. Yet if you’re nearing retirement and considering a move, you might want to consider renting instead of owning. What’s the scoop?

While many older Americans are homeowners, the amount of renters is steadily on the rise. As Money reports, a survey from RENTcafe.com found that the percentage of renters at least 60 years old jumped 40 percent from 2007 to 2017. One of the main reasons for that is cost. In some places, renting a home costs less than you’d spend annually as a homeowner. Even if you own a home without a mortgage, there are still property taxes, maintenance and insurance costs cutting into your budget. Meanwhile, if you rent, there’s your monthly rent check and that’s pretty much it.

Another factor to consider is the amount of equity in your home. If you have a lot, it could make sense to sell your home and move the profit from selling into your retirement nest egg where it can grow to support you. Keep in mind that the first $250,000 in capital gains from that sale is tax free, as long as you’ve lived in the home for at least two years.

Renting in retirement can also make sense if you’re ready for a hands-off lifestyle. When you rent, everything is taken care of for you. There’s no need to mow the lawn, fix the dishwasher, clean the gutters, etc.

Bottom line, if a move is in your future and you’re nearing retirement, take some time to consider your options. You just might find that renting makes more financial and lifestyle sense.

Articles
Going Long on Long-Term Care Insurance
Going Long on Long-Term Care Insurance

Long-term care insurance is essentially coverage for aging and illnesses that don’t go away. Benefits kick in when you’re unable...

Read More

College Considerations
College Considerations

If you’re mentally preparing yourself to send one of your kids off to college, make sure you’re also financially preparing yourse...

Read More

Time to Check-in
Time to Check-in

Don’t look now, but 2019 is almost over. Summer has ended, the holiday season is set to begin any day and the end of the year is ...

Read More

Capture the Job With a Good Cover Letter
Capture the Job With a Good Cover Letter

Job hunting is no walk in the park, so make things easier on yourself by crafting a cover letter with some pop. Your resume is im...

Read More

Why Parents Avoid Discussing Money
Why Parents Avoid Discussing Money

If you’re not talking to your kids about money, you’re likely making a big mistake. Not only do kids learn things through your si...

Read More

Waking Worries
Waking Worries

The unemployment rate is at its lowest point in 49 years. Interest rates and inflation are low. But while the economy is doing we...

Read More

Revamp That Resume
Revamp That Resume

Are you on the hunt for a new job? If so, you should give your resume a once (or twice) over. According to Tina Nicolai, a former...

Read More

Wait It Out
Wait It Out

According to a new report, almost everyone claims Social Security at the wrong time. A study from United Income, a money manageme...

Read More

First Job Guide
First Job Guide

For many teens, when school is out, the summer job is in. If this is your teenager’s first summer finding employment, there are a...

Read More

Website Terms of Service

Please read these "Website Terms of Service" carefully before using SavvyMoney Checkup ("site", "website"). Accessing this site, or making this site available to any third party, indicates that you have read and accept these terms.

  1. Materials. Materials in this site are copyrighted and all rights are reserved. Text, graphics, databases, HTML code, and other intellectual property are protected by US and International Copyright Laws, and may not be copied, reprinted, published, reengineered, translated, hosted, or otherwise distributed by any means without explicit permission.
  2. Links to Third-Party Sites. Linked, third-party sites from website are not under the control of the Licensor. The Licensor is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites.
  3. Confidentiality of Codes, Passwords and Information. Licensee agrees to treat as strictly private and confidential any username, password, user ID, and all information to which you have access through password-protected areas of website.
  4. Maintenance. Licensor shall provide Licensee any new, corrected or enhanced version of the site as it becomes available. Such enhancement shall include all modifications to the site which increase the speed, efficiency or ease of use of the site, or add additional capabilities or functionality to the site, but shall not include any substantially new or rewritten version of the site.
  5. Limitation of Liability. Licensor shall not be responsible for, and shall not pay, any amount of incidental, consequential, or other indirect damages, whether based on lost revenue or otherwise, regardless of whether Licensor was advised of the possibility of such losses in advance. In no event shall Licensor's liability exceed the amount of license fees paid by Licensee, regardless of whether Licensee's claim is based on contract, tort, strict liability, product liability or otherwise.