Is it Better to Buy a Home or Rent It after Retirement?
Aug 14, 2017 Home Trading Steps
The world is changing rapidly and so are the lifestyles of people. These days more and more youngsters are moving out of the country or their home city for better jobs and lifestyle. This has increased the demand for homes that cater to the needs of senior citizens. Many builders are now launching projects keeping the senior citizens and their requirements in mind.
But the most important question is whether the senior citizens should rent a home or buy it? It often confuses people.
We discuss all the factors that can help in taking the decision easier:
1. Inheritance:
You need to ask yourself if you want to leave an inheritance behind or not. If not, then it is better to rent it. You will be able to get a better deal that way. But if you want to leave behind property for your children, then it is better to buy it.
2. Flexibility:
Do you want to be flexible with the property like do you wish to live in the place where it suits your requirement and not make a lifelong commitment? If this is the case, then it is better to rent rather than buying a property.
3. Maintenance cost:
When you buy the property there are some other expenses that come with it. You need to be fully prepared for them, like maintenance charges. When you are the owner of the property then all the maintenance of it falls on your shoulder. If you are the tenant, then it saves you a lot of money and all the maintenance falls on the owner’s shoulder.
4. Post retirement income:
When you buy the property, you can rent out a floor and get monthly income from it. Rent can help with the post retirement income which can support you financially.
There are few things you need to keep in mind while buying a property for rental:
Be clear of the finances you can put in the same. Don’t go overboard with expenses.
Try to buy it in the area or locality where the price escalation is good.
Hire an agent carefully.
5. Tax benefit:
There are certain tax benefits for the reverse mortgage of the properties. You can buy the property, then walk to the bank and mortgage the property you just bought. The bank will pay you a monthly mortgage for the same which will help you in getting the monthly income. This income is not- taxable. Thus it is a good option for the senior citizens.
But the most important question is whether the senior citizens should rent a home or buy it? It often confuses people.
We discuss all the factors that can help in taking the decision easier:
1. Inheritance:
You need to ask yourself if you want to leave an inheritance behind or not. If not, then it is better to rent it. You will be able to get a better deal that way. But if you want to leave behind property for your children, then it is better to buy it.
2. Flexibility:
Do you want to be flexible with the property like do you wish to live in the place where it suits your requirement and not make a lifelong commitment? If this is the case, then it is better to rent rather than buying a property.
3. Maintenance cost:
When you buy the property there are some other expenses that come with it. You need to be fully prepared for them, like maintenance charges. When you are the owner of the property then all the maintenance of it falls on your shoulder. If you are the tenant, then it saves you a lot of money and all the maintenance falls on the owner’s shoulder.
4. Post retirement income:
When you buy the property, you can rent out a floor and get monthly income from it. Rent can help with the post retirement income which can support you financially.
There are few things you need to keep in mind while buying a property for rental:
Be clear of the finances you can put in the same. Don’t go overboard with expenses.
Try to buy it in the area or locality where the price escalation is good.
Hire an agent carefully.
5. Tax benefit:
There are certain tax benefits for the reverse mortgage of the properties. You can buy the property, then walk to the bank and mortgage the property you just bought. The bank will pay you a monthly mortgage for the same which will help you in getting the monthly income. This income is not- taxable. Thus it is a good option for the senior citizens.
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