Should I sell my Home and Rent when I retire?
Wednesday Feb 05th, 2020
Retirement’s so close you can taste the salt of a Margarita and feel the breeze of the ocean on your skin.
Here are some Pros and Cons to decide whether Renting works for you!!
- Liquid Capital
Many People entering retirement do not have a lot of liquid capital. If you sell your home and rent, you will have a large amount of funds that can provide you some financial comfort.
At the time you purchased your dream home, it fit the lifestyle you were leading at that time. Most Often when people retire, their children have already moved out, and their home is much larger for the current lifestyle.
When you own your own home, you have to be prepared for repairs at anytime. As the home ages that requires time and money out of your retirement savings. If you were renting you can spend more time enjoying your home without having to worry about the financial burden of fixing a leaky roof.
- Loss of Equity
If you decide to rent it means you can have more liquid capital, but it also means that you no longer have an appreciated investment and no “emergency” assets.
Owning a home comes with stability and control that renting does not. Each year rent increases. You also can remodel your home you own and not a place that you rent.
- Tax Benefits
There are many tax benefits and credits that you can apply when you own a home. For Example there is the Home Accessibility Tax Credit that you can claim up to $10,000 to make your home safer and more accessible. When entering into retirement age, some are in need of stairs, tubs and other features that become difficult to manage. These costs can be offset with a tax credit. For more information on these benefits contact Evelyn your neighbourhood Realtor.
Should I sell my house or rent? This is a difficult question, contact me and we could sit down and come up what the best decision for you!