Many argue it’s best to own a home in retirement instead of renting one. But there are exceptions. Sometimes, renting makes more sense.
There are situations where signing a lease beats a mortgage — even during retirement.
A recently retired teacher and her husband, sold a house to move into a rental apartment community.
“We don’t need a five-bedroom house anymore, and we weren’t ready to make a commitment for a condo,” she said. And they’re not sure when they will. In the interim, they decided to live in a “fun” place, where they could walk everywhere and have easy access to all the cultural attractions downtown has to offer.
When Flexibility Rules
Renting a 2 bedroom apartment in Garner, NC affords flexibility, and you can still have that extra bedroom if you want it. And that flexibility is a big reason retirees turn into renters — at least for a while. Retirees may rent to try out living in a new location. Or they can rent to see if they like being snowbirds, spending the colder months where the weather is warm.
Flexibility is also helpful when financial or health situations change, requiring a move to a less expensive place, to a place closer to family, or to a care facility. Renters don’t have the burden of selling a home should those issues arise.
Plus, apartment living comes without some of the hassles of homeownership.
Many retirees are looking for the same experience as that of their Millennial children or grandchildren — they want to live in an all-inclusive place where they don’t have to worry about maintaining a home. What’s more, renting an apartment might be best for those who want to be within walking distance of cultural activities, stores and restaurants.
For those with insufficient retirement savings, renting could also be a good option. Instead of tying up money in a house, an asset that typically appreciates at a slow pace, some might be better off renting in retirement and considering other alternatives for their money.