Senior Living – Renting vs. Owning

Like your family tree, owning property gives you roots, but renting gives you wings. Is it better to rent or buy after age 65? Well, isn’t that the $64,000 question? The short answer is “yes”. Either option can be correct. Maybe selling an existing home, pocketing a profit and downsizing into a condo, rental, motorhome or house boat is the way to go. Advantages of Renting Possibly the greatest advantage of renting is being released from most or all of property maintenance and repair expenses and labor. Read the fine print in a lease to understand precisely what you will be responsible for beyond keeping the interior, including large appliances, in good shape. If the washing machine wears out or the microwave oven quits or a tree falls, well, you might just need to make one phone call. Concerns about rent increases are valid, especially as building insurance and property taxes rise. Renters need personal property insurance, as the landlord and/or HOA insurance covers the building and maybe large appliances, not any personal contents. If you choose to rent in a senior assisted living community, you can live independently, increasing assistance as you need it in coming years. Renting elsewhere offers other benefits, and you can still hire senior care professionals when appropriate.  Perks of renting can include: •   Flexibility (Don’t like a place? Pack up and move when the      lease ends.)•   Travel for extended vacations with fewer concerns about      maintenance, water, yardwork, etc. •   Freedom from most chores like lawn care and interior      painting•   Vastly reduced repair and maintenance expenses•   Neighbors and socializing opportunities in some settings•   Accessible living choices (one-story, elevator, ramps)•   Equity from home sale can provide additional monthly      income via investments•   More time for walks and coffee, reading and stopping to      smell the flowers. Advantages of Owning According to a 2023 Harvard Joint Center for Housing Studies survey, about 59% of homeowners enter their retirement without a mortgage. Even with an affordable mortgage payment, there are good reasons for staying in your own home, like:  •   Continuing to build equity in your home, not someone      else’s•   Having a source of money in a line of credit or reverse      mortgage•   As property values increase, your net worth appreciates•   Mortgage interest deduction •   Stability and familiar surroundings•   Your insurance policy includes furnishings and valuables•   Making interior and exterior renovations as you wish•   Predictable monthly mortgage payments with possible      tax or insurance tweaks Mike Weber, REALTOR® with Long & Foster, is seeing retired people staying in their homes or downsizing to a smaller house. “If older homeowners have a primary bedroom suite on the main level of a multi-story home, they are likely to stay put, avoiding the hassle of moving at all. But, most of those who embrace downsizing, still want a house to avoid close neighbors, HOA, parking issues and so on.” A former occupational therapist and advocate of aging-in-place, Dwight Atkinson sings praises to companies like Bruno and Harmar. Both American companies carry impressive stair lift products. “It’s the therapist in me that wants to fix things for older people to be comfortable in their own homes,” he relates. “I see several retirees who sell their home in the New River Valley and relocate to The Villages in Florida, though I recently helped a client sell her house to downsize and rent in our area.” Atkinson is a REALTOR® with Nest Realty. While he’s in the business of selling houses, he loves when people can modify their homes for aging and contract caregiving, housekeeping or personal support services as needed. After spending her married life in a rural setting in Giles County, retired teacher Judy Keating moved to a townhouse in Christiansburg. “My [late] husband took so much pride in the home he built with local rock and chestnut logs from old barns. Leaving our farm was incredibly hard, but I was ready to pass on the large house and property to someone who had the excitement and energy to take over.  Downsizing was a challenge, but honestly, I found it freeing and love the smaller floor plan and ease of the townhome.”Weber observes an interesting domino effect in the NRV real estate market. “With many retirees choosing to stay in large homes, the next generation, like ages 40-50-ish, do not have a large pool of bigger homes to advance upward. As they are staying in what was likely their first home, the 30-somethings seeking their first home are finding many of them not coming on the market because the retirees, two generations ahead, are aging in place, or something like that.” It’s an interesting conundrum.  The Bottom Line Renting has an appeal for the active retiree who prefers traveling over mowing and walking over replacing a broken window. Fieldstone Apartments in Blacksburg are affordable with a club house and 24/7 fitness center, while The Adams at Peppers Ferry in Christiansburg offers luxury everything. While not marketed solely to the older crowd, the very nice and very popular Villas at Peppers Ferry in Christiansburg and The Vistas in Blacksburg attract the downsizing, retiring homeowner for precisely what Keating stated in a “smaller floor plan and ease of townhome living” or patio home lifestyle for the Villas. Both Weber and Atkinson concur on the difficulty buying at either place because they often sell by word of mouth when neighbors know a change in residence is imminent for them or for a friend.People approaching retirement need to evaluate all the angles of housing, finances, tax and investment perks, neighbors, location, activities, health care support and more with a long-term vision of forever here, wherever that may be.   Text by Jo Clark Jo Clark is retired, but still works as a travel writer and photographer. She bought a house where she loves living on the coast, with the plan that it will be her forever home. Follow her exploits on her podcast at JoGoesEverywhere.Podbean.com or find her on Instagram @ JoGoesEverywhere.