Buy or Rent in Retirement

Services for Real Estate Pros

Buy or Rent in Retirement...what's the best option?

Both Renting & Buying have advantages & disadvantages...

a few to consider when making the decision.



 More Control--The most obvious advantage of buying is that you decide where and how to live. You do not have to worry about a landlord raising your rent or selling the house. If you want to change the light fixtures, knock down a wall or have a will not have to ask permission from the landlord. Potential Appreciation--Due to incredibly depressed prices you may be able to buy at a much better price than a few years ago, which increases your chances of price appreciation. Homeowners do have some hope of making a profit, while renters do not.


Increased Cost--On a cash-flow basis, owning is generally more expensive than renting. When the roof leaks, pipes break, appliances stop working....etc., you are the one who pays for the repairs. More Responsibility--You can't just call the landlord or management company and ask them to take care of certain's on you.



Freedom--Pick up and go where and when you want, if you want to try to live in a new area it's much easier not have to worry about trying to sell a home.

Extra Cash--All of your capital will not be tied up in your home, you will be able to invest in other areas.


Less Rooted--Homeownership makes you feel more a part of the community.

No Equity Building--In a typical mortgage, some part of your monthly payment will go toward equity in your home. With a little good fortune your home will increase in value. Whatever you pay in monthly rent has no chance of buidling equity.

Buying or Renting...there is no right or wrong answer, it is ultimately a personal decision on what is best for you in your retirement.


Comments (4)

Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

What a great post! Thank you for sharing this post.

Apr 19, 2011 07:00 AM
Delores Palmer
WeWrite LLC - Alameda, CA


What a timely topic and good, valuable content too.  Those are great points to bring to our aging clients considering downsizing, too.

Apr 19, 2011 11:53 AM
MJ Anton
Ormond Beach, FL

@ Ralph...Thank you for taking the time to comment

@ Delores...I appreciate your feedback, thank you

Apr 20, 2011 12:09 AM
Justin Coleman
Fairway Independent Mortgage Corp - Salt Lake City, UT

How about the tax advantages of owning? I am sure that folks on retirement income will want to sheild as much of that from the Tax man as they can.

Apr 26, 2011 02:35 AM