Are you looking to downsize now that you have retired? Once all your kids have flown the nest, you are finally free to move to the place you want, rather than the place you need. But instead of buying, renting in retirement could be the better option.
Don’t just take our word for it. Read on for four advantages of apartment retirement rentals for seniors.
As a homeowner, you spend your weekends doing household chores including mowing the lawn or shoveling the snow, cleaning gutters. As a renter, you can spend your time enjoying yourself! Renting also leaves you with more freedom from tying yourself down.
When it comes to moving, you’ll often have a rough time getting back the cost of purchasing and selling a home. If you’re not sure you want to settle long term too, the freedom of renting is a better choice.
If you’re traveling, renting offers peace of mind too. You don’t need to worry when leaving your apartment for long periods of time as you would if they’re owned.
As a homeowner, maintenance costs and bills quickly add up. If the furnace breaks, roof leaks or the foundation cracks, that money put aside for a vacation or new car is now spent repairing the home. Or worse… if you don’t have money put away, you’re faced with having to figure out how to pay for these repairs. If you’re living on a fixed income, this can be an unpredictability that you could do without.
If you’re renting an apartment, the apartment community takes care of these repairs, leaving you stress-free!
You may have purchased your home to be in a specific school district. Now, you can find a place that’s better suited to how you live as retirees. Get a place closer to shopping, entertainment, or the trail system. And you may not need a third or fourth bedroom now so you can downsize and save some money.
You will cut your expenses and save a lot of capital if you choose to rent. For example, if you have $350,000 from a house sale and you invest it at 6% a year, that’s $21,000 in earnings the first year. Even after taxes, that amount can go a long way.
You could earn more on investments than you can get in house appreciation. According to the U.S. Census, appreciation has run at an average of 5.4% a year since 1963.
In comparison, the annualized return for Standard & Poor’s 500-stock index was 10% over that same period. So, you could be better off putting that mortgage money in an individual retirement fund.
Choosing Retirement Rentals
As you can see, there are some pretty good reasons to chose retirement rentals. Renting an apartment offers greater flexibility with responsibility, and could even make you more money than buying.
If you are looking to downsize in Fort Wayne, contact us at Montrose Square Apartments. We offer the beauty and quiet of country living with shopping, dining, and entertainment just around the corner.