To buy or not to buy: Decisions when you retire

In a lot of Western countries, there is something of an expectation that we are all meant to get on the housing ladder in record speeds. As it turns out, not everybody joins this elusive club. Or, at least in some cases, some people might join it, but join it very late in the day. It means that they have a big decision to make when it comes to their era of retirement.

Bearing this in mind, today's post is all about summarizing the two options. There's no right or wrong answer when it comes to buying or renting in your latter years - it depends on your individual circumstances. Let's demonstrate this through the following article.

The case for buying...

There is a huge benefit of heading off into retirement mortgage-free and for some, it's what dreams are made of. This is by far and away the biggest advantage of buying a home ahead of retirement, and the fact that you no longer have that burden of paying to live in your house is of huge significance.

There are other benefits that you need to focus on when you make your decision, though. The first is inheritance. This might not be a topic that some people like to think about now, but if you are contemplating leaving anything to your children then a house, due to the way in which property prices historically increase over time, is one of the best gifts you can give.

On the subject of the rising prices of property, let's think about some worst-case scenarios. An emergency might mean that you suddenly require an influx of money, and if you own your home you obviously have this option. You can take out equity against it, and not have to worry about where you can quickly source some money from.

The case for selling...

In truth, the cases for buying are relatively straightforward. This next section is where we throw a few curveballs.

Firstly, is your home in an area which is suited to elderly living? As this infographic by Advanced Dental Care shows, not all areas are equal and a quick dig into data can reveal whether or not your home falls into this category. Then, there's another strand to this process; is the home itself suitable? Again, you may have bought it decades ago when you were in your youth, but is your body able to cope with the stairs and other parts of it which might no longer be suitable?

Another point that a lot of people forget are the maintenance issues. Again, when we are young, these aren't really a big deal. It almost becomes satisfying to cut the grass, paint the walls or do anything else which keeps our home in tip-top, condition. As you age, these become real chores though. Do you want to be left with this aggravation? Or would you just prefer that a landlord takes over the reins and does it all for you?

Finally, let's finish with money. We spoke about having the ability to release equity in emergencies when it comes to owning a home. On the flip side, if you haven’t bought one, there’s a chance that you already have a nest egg ready to use in these emergencies. This is why we said at the top of today’s article that this is really custom decision, where there are no right and wrong answers. Owning a home in retirement might be perfect for some, but other people’s circumstances might mean that it’s just not the right move for them.

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