Baby Boomers: Should You Rent?

It’s a familiar scene playing out all across the country every day: Baby Boomers are selling their longtime family homes and downsizing. On the minds of many of them: “Should we buy again? Or should we rent?”

There are pros and cons to both options, and the best choice for each individual will depend on their unique circumstances.

Renting

“It may feel like you’re regressing, but there are actually several advantages to renting after selling a home,” says Cathy Vick, Sales Associate at ERA Justin Realty.” Here is Cathy’s list of PROS for renting in older age:

More Affordable – “Renting can be cheaper than owning, especially if the Baby Boomer is on a fixed income.”

Maintenance – “This is particularly appealing to those who have mowed big yards the past 30 years,” says Vick, “When you rent, ongoing home maintenance like mowing and repairs are the landlord’s responsibility.”

Time is Money – “Minimizing your responsibilities can free up more time and money for the things you love, like certain hobbies like golf or traveling.”

However, there are also some disadvantages to renting. Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty spells out the CONS:

No Equity – “You may be spending less, but you are also earning less. There is no equity in renting. Buying builds equity and generational wealth. Equity is a passive income that you’re earning just by living there. You can pass that money down to your children.”

Rent Risk – “Just because you scored a low rent today, doesn’t mean it will stay that way,” says Metzger, “Landlords are free to raise your monthly rent when your lease is up or sell the property to someone who will charge you more.”

Less Control – “Renters have less control over their living space. Any changes you want to make need to be approved by your landlord.”

Bottom Line

Deciding where to live after selling a long term home depends on an individual’s circumstances. Whether you decide to buy or rent, Cathy Vick or any of the experienced real estate agents at ERA Justin Realty can help you find either a house or an apartment. Give us a call at (201) 939-7500.