retirement who may desire to sell their homes, downsize, avoid the maintenance and other obligations, and go back to renting.
WHICH IS BEST?
Is it better to rent or buy a home? Most adults ask themselves this at some point as they form their goals and plan for the years ahead. Before you answer the question, here are some things to ask yourself. Owning and renting each have their advantages, but what’s best for you depends on your particular circumstances. What will be the duration of your stay in the home? Each market is different, but whether the time you plan to spend in the house warrants its purchase is possible to predict. In most markets, it takes four to seven years to break even on a home (i.e., where there has been enough appreciation to pay back the cost of the transaction, the cost of ownership, and the costs associated with selling). If you’re thinking about buying a home and selling it in two years, buying is very unlikely to be cheaper than renting. (Unless you are in a rapidly appreciating market like has been the case in the Hill Country since COVID.) Do you think of or need your house as an investment in your retirement plan? Many Americans see their homes as a valuable asset, often integral to their retirement strategy. Real estate is commonly regarded as a solid long-term investment, frequently favored over other options like stocks, gold, or savings accounts. Its appeal lies in the potential for value appreciation over time. However, it's wise to remember that the real estate market is subject to fluctuations. Property values can both increase and decrease, influenced by various market and economic factors. This reality highlights the importance of considering real estate as one component of a diversified investment portfolio, recognizing both its potential benefits and inherent risks.
Are you financially ready? Owning a home is a financial
19
Powered by FlippingBook