Should I sell my house and rent when I retire? This is a question I hear a lot of,  especially from seniors or retired clients.



In order to answer this question, let us look at some of the pros and cons to this  decision.


 

PROS

Liquid Capital



Upon entering retirement, many people do not have a lot of liquid capital.


 

If you sell your home and choose to rent, you have an influx of funds that can provide  you some financial comfort.


Shifting Maintenance



When you own your own house or condo, you have to be prepared for repairs at any  time.


If you have lived in your home for a long time, you will appreciate that as a house ages it will require more and more work.


This can take time and money out of your retirement savings.


If you choose to rent, your rental fees pay to have someone upkeep the property and  amenities for you.



This way, you can spend more time enjoying your home without having to worry about  the financial burden of a leaky sink.



Downsizing



When you purchased the home of your dreams, it fit the lifestyle you were leading at the time.



Often, when people retire, their children have moved out and the house becomes  quieter.



Instead of having extra rooms that are not regularly used but still need to be cleaned  and tidied – why not consider renting a smaller space that fits the lifestyle you want to  lead in retirement?




 

CONS

Instability



Owning a home comes with stability and control that renting does not.  Each year your rent will increase, but that is not necessarily the case with a home.  You also have more control to remodel a house or condo that you own than a rental.



Loss Of Equity



While renting means you can have more liquid capital, it also means that you no longer  have an appreciating investment.



Selling your only property / investment puts you in a situation where you no longer have  an “in case of emergency” asset.



The money you are paying in rent ultimately goes to someone else’s pocket.



Tax Benefits



Did you know there are a variety of tax benefits and credits that you can receive for  owning a home?



For example, there is the Home Accessibility Tax Credit which can help you claim up to  $10,000 to make your home safer and more accessible.



As people enter into retirement age, stairs, tubs and other features become more  difficult to manage. You can offset these costs with tax credits.



To learn about other tax credits available with home ownership, this guide will be very  helpful to you.



Should I sell my house and rent when I retire? This is a difficult question to ask that is  tied to a lot of emotions.



Sometimes, financially it makes more sense to own. Other times, it makes more sense  to rent.



If you need help finding the answer to this big question, I would love to help you. You  can call me at 905-683-7800 and we can schedule a time to sit down together and map  out what answer looks best for you given your own set of personal circumstances.




 

Thanks for reading today’s BLOG!!!

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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