The number of people renting continues to rise, with the number of retirees renting also expected to increase. If you’re thinking about renting post-retirement, consider these pros and cons presented by leading Irvine real estate brokerage, Irvine Residential Living.
No mortgage payments – Many retirees find relief selling their homes after retirement, especially if they still owe. Depending on your personal finances and the state of the market, selling might even put you in the clear and allow you to start retirement debt free (and with a little extra in savings).
Freedom – Renting gives you the liberty to come and go as you please, which can be ideal for retirees who want to spend more of their free time traveling.
No maintenance - When you rent, you no longer have all the maintenance and repair responsibilities that come with homeownership. This is especially true if you downsize to an apartment with a property manager who will be the one in charge of upkeep and repairs.
No tax breaks – Homeownership comes with a number of tax breaks, and not qualifying for these anymore could seriously impact your finances. Make sure you understand the financial implications of selling your home before doing so.
Expense – In some areas, renting is more expensive than buying. After feeling out the market, decide what’s right for you. You might meet in the middle and opt to sell your home but buy a condo in Irvine for sale instead.
Landlords – When something needs to be fixed or replaced, you are now at the mercy of a landlord or property manager, who may or may not be quick to respond. Depending on your lease agreement, they may also raise the rent every year.
If you’re still up in the air, consider meeting with a real estate agent who can show you both places to rent and places to buy in Irvine. Seeing what’s currently available may help you decide if it’s the right time to sell, rent, or sell and buy a smaller home in Irvine for sale. Give us a call at (714) 454-6304 today!