and older are homeowners, and more than 80% of people 65 years and up own homes, although nowadays, more and more people nearing or past retirement think about downsizing and selling their homes to rent instead in their golden years, to avoid the physical demands, maintenance, and obligations that come with homeownership. Young people fresh out of college and beginning their careers o ft en choose to rent so they can save up for a down payment and, in the meantime, enjoy lifestyle fl exibility, particularly if they need to move for their job, enjoy travel, and are single, with no children or pets. Which is best — buying or renting? Each has its advantages and bene fi ts, as well as disadvantages and risks, and as I’ve mentioned, the decision will depend on your particular situation. Before you decide, you need to ask yourself some questions: HOW LONG DO YOU PLAN TO STAY IN THE HOME Th is question isn’t always considered when making the decision to buy or rent, but it’s an important one. Do you move a lot? Do you travel a lot? Have you found the city, area, and neighborhood in which you’d like to stay? What about appreciation? Typically, it takes about four to seven years to “break even” on a home purchase (this means that there’s been enough appreciation to pay back the cost of the transaction and ownership). So, for example, if you’re thinking about buying a home and selling it within one to three years, it won’t be worth it. You’re better o ff renting until you know you’ll be staying put for a while longer. ARE YOU FINANCIALLY PREPARED? Homeownership is a sign ifi cant fin ancial commitment for which 7
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