To Buy or to Rent: A Conundrum for Baby Boomers

If you belong to the baby boomer generation and have spent a considerable part of your life in your current residence, the thought of moving to a new place brings along various questions — the most significant one being whether to rent or to buy your next home. The answer to this revolves around your individual circumstances and aspirations for the future. Let's explore the two pivotal aspects that can influence this decision.

The Persistent Rise in Rents

Based on data from the Census, it's evident that rents have been on a continuous upward trajectory since 1988. If you opt to rent, it would mean possibly encountering an increase in rental payment with each lease renewal, a financial strain that could grow annually.

In contrast, purchasing a home with a fixed-rate mortgage grants you the ability to have stable monthly housing payments, securing your financial expenditure in the long term. As articulated by Freddie Mac, this approach ensures little to no alteration in your monthly housing expenses throughout your loan's lifespan, a stability that stands resilient despite fluctuations in other life costs.

Advantages of Home Ownership

A study by the AARP emphasizes that buying generally supersedes renting when considering long-term benefits, offering a plethora of advantages that enhance your quality of life and financial security. Here are a few merits of homeownership highlighted in their report:

• Asset Accumulation: Being a homeowner allows you to accumulate equity over time, fostering a reservoir of generational wealth that could potentially enhance the lives of your descendants.

• Potential for Mortgage-Free Living: If your current home's equity suffices to purchase your next residence outright, you can relish the freedom from monthly mortgage payments, albeit with the responsibility for property taxes and maintenance fees.

• Ease of Aging in Place: Owning your house facilitates the ease of customizing it according to your evolving needs, making everyday living more comfortable and suited to your preferences.

Bottom Line

As a baby boomer pondering over the decision to buy or rent post selling your existing house, a personalized consultation can be instrumental in steering your choice in the right direction. Given the rising rent scenario coupled with the multifaceted benefits of owning a home, purchasing your next abode could potentially emerge as the prudent route. Let's connect to weigh the pros and cons tailored to your situation and make an informed decision in navigating your next chapter seamlessly.

9-18-2023