Should You Buy or Rent When Entering Retirement?

Writting retired and enjoying life on an application form concept for a comfortable retirement

It’s the moment we all wait for, whether it comes after many years of dedication to our job, or recently winning the billion-dollar Powerball lottery, and that moment is your retirement. We’ve all had our own thoughts about what we would do when we eventually reached this stage of our life, whether it be traveling the world, spending more time with family, or anything else. However, once you retire, you may consider changing your living arrangements; maybe you choose to downsize to a smaller home that’s easier to maintain, or you may decide to rent a place. This is an important decision to make as a retiree, so here are some tips for deciding in which direction you should go.

The first thing you need to think about is how long you plan on staying in your new location. If you can envision a long-term residence in a certain house, it would be best to buy. If you think you’ll only be staying in your next location for only a few years, it may be worth it to rent. As a retiree, you may want to use your free time to experience the world and live in a few different places.

No matter how old we are, a pet is always a comforting presence. Obviously, if you decide to buy your own house, you can have a pet without any trouble. But, if you decide to rent, you must check the rental guidelines concerning pets because some rental properties may not allow you to have them. Although I don’t have any pets, I can still tell you that, if I had one, I wouldn’t want to be separated from them in my new living arrangement, so you have to look for a new residence that not only fits within your financial means, but will also allow your pet to live with you.

You also have to factor in the conveniency that each option offers. When you own a home, you have to take into consideration the amount of repairs you may need to face at certain points. When you enter retirement, if you feel like you’ll be able to keep up with the necessary work that’s needed to maintain a house, then, by all means, go for a new house; but, choose one that’s relatively easy to take care of, maybe even one in a 55+ community. However, if you rent a property, repairs won’t be your responsibility because you’ll have a landlord to handle all of that for you. Instead of having the upkeep of the house be your responsibility, you’ll be able to focus on other things that are less bothersome. But, you must remember, if you decide to rent, you may not be allowed to do too much personalization in your home because it’s still the landlord’s property, and they have final say about what you can do with your rental home.

“When a homeowner is downsizing or considering renting, they need to consider their lifestyle as well as finances,” said Teresa O’Shaughnessy, manager of Better Homes and Gardens Rand Realty’s office in Pearl River, NY.  “If a homeowner doesn’t want to or can no longer maintain a home, moving into a rental or condo may be a good alternative.”

Proximity to family may also be a significant factor as to whether or not you buy or rent. If you know you’ll be staying in once place for several years, you may want to live near your family in case you need them for anything. In the scenario you feel you won’t be staying in one place for a long period of time and don’t mind being away from your family after one of your moves, then go for a rental property.

Retirement is an enjoyable time in a person’s life, but there are still some important decisions to be made as you enter this stage, and you should take time to think about what will be best for you in the years to come. Remember, you have arrived at these relaxing years after a lot of hard work, so make sure you choose a living arrangement that will meet your needs. Whether you choose to buy or rent, make these years some of the best of your life. You deserve it!

To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.

 

Sources

www.forbes.com

www.smartasset.com

www.investopedia.com

www.consumerreports.org

Posted on January 18, 2016 at 11:35 am
Rand Realty | Category: Rand Country Blog | Tagged , , , , , , ,

Tips for Renting Out Your Home

Couple Standing By For Rent Sign Outside Home

Sometimes, if people try to sell their home, they may have trouble attracting a buyer. If you’re one of these people, you’re probably wondering what you’re going to do about it. Maybe you plan on consulting a realtor to change around the marketing, or maybe you’ll choose to take your home off the market for a bit. But, have you ever thought about putting your house up for rent? If you don’t have any interested buyers at the moment, renting out your home can be the next best step. It’s worth a try, so here are some tips on how to prep your home for renters.

When trying to estimate a rental price, you have to realize the market is what establishes it. If you set the price too high, you’ll discourage potential renter from approaching you and expressing interest in the property. Determining the rental price isn’t an arduous task because all you have to do is talk with your realtor and conduct some research on the market, which will show you what prices other rental homes are asking for in your area. If you wish to find a renter in a timely fashion, it’s important to have a fair market price, not a price reflecting how much you think your home is worth. In order to have success when attracting renters, this is something you must remember.

You must also realize, as a landlord, you’re going to have many responsibilities with the property. Although you have the benefits of an occupied home warding off vandals and earning some income from the renters, there are many things you’ll have to focus on in order for your property to stay in the best condition. Maintenance is key to not only keeping your renters pleased with the property, but also to make sure your property remains in top condition for when you finally attract an interested buyer.

It’s important to walk through your home and check for any issues you may have to fix before you have any potential renters look at it. Just as if you’re getting your home ready for a buyer, you have to do the exact same thing for a renter. Check the plumbing, the heating, the electricity, and other amenities the renters will need during their rental period. If you aren’t able to sell the house, renters are the next best option, so you don’t want to drive them away with problems that should have been fixed before advertising your rental property to the public.

When you go through your home to prepare for the renters, make a list of the furnishings you would like to take for yourself and which ones you don’t mind leaving with the renters. Even if the renters are responsible people, you never know if an accident might occur with a favorite furnishing of yours that is left in the house, so if you want that piece of furniture for your new home, you should definitely take it with you before the renters move in. After you pick out the furnishings you want, hire a moving company to take what you want for your new home.

Take some time to find the best tenants. You have to make sure you rent out your property to people you know will take care of and respect your home. When you think you have found a possible tenant, your realtor will put them through a screening process and ask them to complete an application listing their name, employers, past landlords, and references. Once your agent gets in touch with the renter’s contacts, you will have a better idea of who the renter is and if you would like to approve their application. If you rent out your house to the wrong person, this be will pose a risk to your home suffering damage and will have you pulling out your hair with stress. With the hard work it comes from being a landlord, stress is something you don’t need.

If you’re having trouble selling your home, don’t fret over this bump in the road; you still have the option to rent it out. However, you have to remember there’s a considerable amount of preparation you must take to prepare for the renters to move in, just as if you were selling your home to a buyer. At least if you have people renting out your home, there will be less time the house is unoccupied. If you have a responsible individual renting out your home, you will know your home is in good hands until the right buyer comes along.

To learn more about Better Homes and Gardens Rand Realty, visit their website and Facebook page, and make sure to “Like” their page. You can also follow them on Twitter.

 

Sources

www.realtor.com

www.usaa.com

www.biggerpockets.com

www.investopedia.com

www.homes.com

www.yourfinanciallife.bhoharris.com

Posted on December 23, 2015 at 11:43 am
Rand Realty | Category: Rand Country Blog | Tagged , , , , , , , , , ,