Buying vs. Renting in Retirement

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

For a lot of retirees, one of the biggest decisions they face in the years leading up to retirement has to do with where they'll live down the line - will they stay in their same house or look for something new? While some decide that staying put is the best decision, there are a ton of others who find that leaving their current location is the best move to make financially, but that opens the door for a new question - should they rent or should they buy?

If you're currently asking yourself the same question about renting vs. buying, the information below should help you as you start to make a decision.

Buying

Generally speaking, CNN Money explains that financially, it usually makes more sense to buy and own a home rather than rent. If your goal is to have a home that you can leave as inheritance, the same is true for you during retirement - according to Trulia, some of the cheapest cities in the U.S to buy during retirement (as compared to renting) include:

• The Villages, Florida
• Naples, Florida
• Venice, Florida
• Delray Beach, Florida
• Deerfield Beach, Florida

Renting

If leaving inheritance isn't as important to you, renting may just prove to be your best bet - Trulia explains, "if retired households don't care about the equity in their home at the end of their life, renting a home is the better option in 98 of the 100 cities with the most retirees." Knowing this, if you're just looking for a place to live during retirement and don't have someone to pass your home to upon your passing, renting may be your best decision financially in the long run.

At the end of the day, the biggest factor in deciding whether you'll rent or buy comes down to what you want to do after you've passed, so be sure to carefully consider your plans! 

At American Investment Planners LLC, we've helped tons of families with the retirement planning process, so we know what questions should be asked and what factors should be considered when it comes to figuring out if you should rent or buy during retirement - let us help you next! To make an appointment with one of our retirement planners, please send an email to info@americaninvestmentplanners.com or give us a call at (516) 932-5130 today.