If you’re a Baby Boomer and you sold your house, what will you do next? Well, if you’re like me, you’ve lived in your own home for a long time. But the kids are gone, and you only use 4 of the 10 rooms in the house. It’s a lot of work to maintain the house, and it’s expensive to keep up with the maintenance. Not to mention all of the works it takes. So, the smart decision is probably to sell and move into something smaller.
But where will you go?
It’s a tough decision. Are the kids close? Do you want to be near them, I know I do. If they have moved out of the area, should you follow them?
If you are going to follow them and move to a different part of the country, you may consider renting a home. This will allow you to learn the new area, and figure out where you want to live when you buy the new home. And you’re not alone. The number of renters older than 55 has been rising while the number of millennials who are renting are decreasing.
Is renting for you?
But here’s something to think about. Is renting a good long term strategy for you? Many Baby Boomers who sold their house are finding that there are some benefits to being a renter. If your kids move again, it’s easy for you to pack up and follow them. Even if you remain local, it may make sense. Someone else is responsible for maintenance and repairs on the home. On the surface, it doesn’t make financial sense to rent. You usually can purchase a home for less than it costs to rent a similar home. But you can use the equity you built from the old home for medical expenses, travel or whatever you want. You won’t have it tied up in a house.
And if you decide to become a renter, you are in good company. Freddie Mac expects more than 5 million baby boomers will rent their next home by 2020.
Like I said, it’s a tough decision. And many Baby Boomers like you have sold their house. However, the number of available rentals in 55+ communities is limited. If you would like to discuss your options, call me. Art Reiman – Realtor.