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Should Baby Boomers buy or rent after selling their homes?

Are you a boomer who has lived in the same house for many years and is ready for a change of scenery? You have many things to consider when you are considering selling your home. Will you move out of state or stay close by? Is it the right time to downsize, or do you need more space for your family? This decision is based on your current situation as well as your future plans. Expect Rents to Continue Going UpThe graph shows how rents have steadily risen since 1988 using data from the Census. Renting means that your rent payment may increase each time you renew the lease. You may not want to have to deal with higher rental expenses every year. When you buy a house with a fixed rate mortgage, you can stabilize your monthly housing payments. This keeps your monthly payments stable and predictable over the long term. Freddie Mac summarizes it this way: ” . . You can be confident that your mortgage payments won’t change much in the long term, even when life’s other costs do. Owning your home has unique benefitsAccording to AARP buying your next house is a better strategy in the long run than renting. “Even though each option has pros an cons, buying offers more pros with a wider range of benefits.” To help you decide what you’ll be doing after you sell, below are a few of those benefits. The equity in your home can be passed down to loved ones and help them live a better life.
You may not even have to make a mortgage payment each month. If you have enough equity in your home to buy it outright, then you won’t need a mortgage payment. You may still have to pay for property taxes or maintenance costs, but not having to worry every month about a mortgage payment can be a huge relief.
Aging in place is easier than you think. Owning your own home allows you to make changes to your home if your needs change.
Bottom LineIf you are a baby-boomer who is wondering whether to buy or rent your new home, ask a reputable real estate agent for their advice. Rents are rising and homeownership offers so many benefits that it might make sense to buy your next home.

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