Many people work hard all their lives to afford a good home and recoup it in time for retirement. And this is a completely achievable goal. If you take a 30 year old mortgage in your 30s, you can easily get paid on this loan by the time your career comes to an end.
But while many people dream of having the pleasure of owning a paid home in their older years, I have no intention of owning a home at this stage in life. That’s why.
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Does home ownership really provide financial stability?
There are many things I want to do in retirement, and my goal is to save enough money to be able to lead a life free from financial stress. But if I were the owner of a retired home, I wouldn’t get it.
To me, home ownership is like a ticking time bomb when you just wait for something to go wrong or costs will increase. At the moment I have owned the house for about 12 years and when I bought it it was completely new… Regardless, over the years I have encountered many unexpected repairs – repairs that have caused me a whole world of stress and made me plunge into my life. emergency fund more times than I would like.
In fact, this summer alone I have already spent over $ 1,000 repairing my air conditioning system and fixing another burst pipe in the basement. And that’s over six weeks.
From the moment I bought the house 12 years ago until the last invoice, my property taxes have gone up by $ 8,000. Over the years, I have seen my tax bill increase by more than $ 2,000. And while I don’t know yet what the tax bill will look like next year, I expect another significant increase as home values rise across the country.
It is because of these ever-increasing and unplanned costs that home ownership is not the right fit for me during my retirement. At this stage in my life, I want to know that my monthly housing costs are fixed, and the only way to achieve this is by renting a house, not buying it.
I understand that leases may seem less stable than ownership. When you rent, your landlord may start charging you more when the lease expires. Or your landlord may not renew the lease at all. But the beauty of renting is that you are guaranteed the same monthly rent as long as the lease is in effect. And for me it’s a lot more comforting than having to rock the random $ 800 renovation bill from a fixed income or grappling with yet another real estate tax hike.
In fact, the only thing that really worries me about property taxes (other than how high they are in the place where I live) is that they make me feel like I will never own my home directly, not even if my mortgage is paid. I will always have to pay, so to speak, a fee for the right to continue to use the asset for which I paid. I do not like it. So I really want sell my house and start renting one as soon as possible (I have young children right now and I am attached to the school district, so this is not the case).
Many retirees may find that owning a home gives them financial security… But I plan to take a very different route – one that will give me a lot more peace of mind.