Despite the numerous benefits of owning a home, the rental market continues to expand in one key market—seniors! Since 2005, people in their 50s and 60s have accounted for the biggest single section of the rental market increase. However, seniors choosing to rent instead of buy are missing out on a whole host of rewards that go alongside homeownership.
Easier to Budget
Living off of a limited retirement income can be tricky in a rental market. You will always be at the mercy of your landlord or property management company, which means that rent could rapidly escalate over the years. When you own a home, you don’t need to worry about your rent going up. While property taxes and maintenance costs might fluctuate, you will never need to worry about your housing payments increasing throughout your retirement. What’s even better? 70% of homeowners who are 65 and over enter retirement mortgage-free, which means you might not even have a payment to make if you continue to live in the same home.
A Home Is an Asset
When you own a home, you have something of value that you can pass onto your heirs in the future. Even if you are forced to dip into your savings during retirement, you can always leave your home behind to beneficiaries. Many seniors choose to keep their homes partially to give the gift of a significant asset to their children.
Home Equity Is a Potential Source of Income
As you age, homeownership becomes a powerful source of potential retirement income and financial security. Tapping into your accumulated home equity is a possibility once you reach retirement. There are numerous strategies you can use to tap into your home equity, including carrying a mortgage into retirement, renting the home or taking a reverse mortgage.
Home ownership comes with a number of tax benefits. If you choose to itemize, you can typically deduct mortgage interest and property taxes. You don’t get the same tax breaks when you choose to rent! Working with an accountant can help you to determine whether or not the tax benefits of your homeownership are worth it.
Partner with the Okeke Team
Whether you’re a first-time home buyer or looking to sell your home, the Okeke Team of Tristar Realty, Inc. is here to help. We specialize in turning your home dreams into reality. To get the buying or selling process started, or just to learn more about what your property might be worth, contact us today by calling (443) 825-0023.