Buy or Rent?

Knight

Senior Member
Or it could be as simple as living in the same town you grew up in, working at one of the few jobs available but happy. Wealth isn't always what suits the needs of some.

Then there are the people that as they age discover their needs change and look for ways to change. I took this thread as the op looking for input & the experience of others to help make a decision. This is the 76th. post so maybe there is enough input to help with that quest.
 

mathjak107

Senior Member
Or it could be as simple as living in the same town you grew up in, working at one of the few jobs available but happy. Wealth isn't always what suits the needs of some.

Then there are the people that as they age discover their needs change and look for ways to change. I took this thread as the op looking for input & the experience of others to help make a decision. This is the 76th. post so maybe there is enough input to help with that quest.
there are loads of reasons but for most of us it is based on half a head of knowledge since our brains can only reason with what we know . it can not factor in any thing we don't know and there may be key pieces of information missing .

no different then many look at with ss concerned with one factor ,breaking even . once you learn all the other intertwined things based on when you file you find what if i live is the bigger decision and so much criteria can be involved in making an informed decision but if you dont know you may leave a few hundred thousand dollars on the table unknowingly ... will whatever you do work ? sure it will but is it the best choice ? maybe not .
 

Nosy Bee-54

New Member
The real estate people say I should get $250,000 or a little more for my home. I now need to decide whether to buy or rent when we move.

Will need 3 bedrooms because wife's daughter will move in with us to help take care of us. I'll be 78 next month, my wife is 80.

We first talked about buying a house but after some deep thinking on the subject I'm leaning hard toward renting.

I have a list of pros and cons in my head that support renting but before I mention my thoughts

I would like to hear others thoughts about it.
In reading over the thread, many of the replies have taken a tangent from the original question. A couple at or near 80 with one needing regular care want to know if to buy or rent? In my opinion, at that age (and expected years of life remaining) I don't know why buying for a return on investment is important. Only the beneficiaries would benefit anyway.

A house means management of maintenance but also the daily care-giving that has to be done. Renting means somebody else handles the former and OP and the wife's daughter takes care of the latter.

As someone else mentioned, most people own too much house but when renting they normally only get the needed square footage.
 

rkunsaw

Well-known Member
Original Poster
In reading over the thread, many of the replies have taken a tangent from the original question. A couple at or near 80 with one needing regular care want to know if to buy or rent? In my opinion, at that age (and expected years of life remaining) I don't know why buying for a return on investment is important. Only the beneficiaries would benefit anyway.

A house means management of maintenance but also the daily care-giving that has to be done. Renting means somebody else handles the former and OP and the wife's daughter takes care of the latter.

As someone else mentioned, most people own too much house but when renting they normally only get the needed square footage.
I've been leaning toward renting from the start. It makes more sense financially, but if I buy I'll be able to make changes that might be needed for health and mobility issues.
For sure I'll rent at first so I can see if we like the area.
 

Catlady

Senior Member
Location
Southern AZ
Both buying and renting have their pros and cons. What you decide on depends on your lifestyle and temperament. I've only rented like maybe four times and did so only temporarily. I didn't like all the rules I had to follow and always felt I was giving my money away to the landlord (even though I knew I was paying for a big service). Renting just does not appeal to me, but appeals to others. As long as the choice is voluntary and not compulsory, "all is well that ends well".

So, @rkunsaw - Have you made a decision?
 

Packerjohn

Packerjohn
Location
Canada
It seems a great idea to buy when you are young & just married. You know the investment of the purchase. However, by the time I "hit" my 70s I sure was glad to sell my house. I have been a home owner all my adult life. Goodbye to all those bills for water, sewage, taxes, repairs, repairs & more repairs. Goodbye to the basement rec. room, the garage & that lawn. Love my condo. Really no rules to worry about. Just one rental payment/month plus hydro. I enjoy the underground parking, the common room for "Happy Hour" & the peace & quiet of the building (it's 50 plus). Nice folks live in this building. Always ready for a bit of a chat with a friendly smile. You hear stories about seniors being "lonely". Well, fortunately, I don't know the meaning of that word. LOL
 

Liberty

Senior Member
Location
Texas
Latest news is Julie wants to buy a house and we would pay her which would be ideal for her and us.
Problem is she can't find anything she can afford that would be suitable. We're in a holding pattern right now.
We've noticed how much more expensive any kind of "starter home" is today. It can be hurting the whole real estate market, as that is what its built on...moving up. Living in a home, selling and buying a larger one as the kids grow. Sure hope it changes for this new generation.
 

Aunt Bea

Well-known Member
Location
Near Mount Pilot
Latest news is Julie wants to buy a house and we would pay her which would be ideal for her and us.
Problem is she can't find anything she can afford that would be suitable. We're in a holding pattern right now.
This could get messy but have you considered her buying the house and you holding the first mortgage.

You could still pay her rent which would basically be an offset against her mortgage payment to you each month and you would have some protection over your investment with a first lien on the property. If anything happens to you the remaining mortgage balance would become an asset of your estate. If anything happens to her your investment would be protected by the mortgage. If a 30-year commitment bothers either of you the mortgage could be written with a 30-year term and come due with a balloon payment after 3-5years at which time she could refinance or sell the property to pay you the remaining balance. Just make sure to have an attorney spell it all out in the terms of the agreement so there are no surprises on either side.

It's a serious decision that would require some soul searching for all of the people involved but it might allow your daughter to get some tax benefits and growth of the real estate values that would help her with her next home purchase.

Good luck!
 

Happyflowerlady

Vagabond Flowerchild
Location
Northern Alabama
What about renting a duplex (both sides) for the time being ? That would put you closer to Julie, and renting a duplex might be cheaper than trying to rent a large enough house. Once you are there, and have things in storage that you do not need right away, you can search for the perfect place while your house here sells, and then you have the extra money to buy a house out in California.
 

Catlady

Senior Member
Location
Southern AZ
I think it would be a good idea to talk to an elder lawyer to make sure you're protected with whatever you plan to do. She may be your wife's daughter and may seem an angel, but even children have turned against their parents and defrauded them or abused them. Hate to be such a cynic, but do a Google and you'll find plenty of stories.

I know a couple where the wife has muscular sclerosis. They took care of the daughter's two sons from birth so she could work, with the implicit promise that they would take care of her children and she would take care of them in their old age. Once the boys were teenagers and the mother got worse, she promptly found them an assisted living place to move to.
 

StarSong

Well-known Member
We've noticed how much more expensive any kind of "starter home" is today. It can be hurting the whole real estate market, as that is what its built on...moving up. Living in a home, selling and buying a larger one as the kids grow. Sure hope it changes for this new generation.
Amen to this. In our area, starter homes are over $600K. We're talking 1500 SF max, 50 or more years old, and tiny lots. It's total craziness.
 

CrackerJack

UK England
In England many people like to buy their house rather than rent. I do know some European countries rent rather than buy. The British are among the biggest propety buyers in the Western world; in fact we are thought to obsessed with buying rather than renting.

We bought our first house in 1964 and had three moves in the time between yhen and 1995. Mortgages were high in the 70's and we and many struggled to pay their mortgage and we never got into arrears but many did back then.

The ethos now here is buy and not rent and thoughts are once you are off the property ladder its difficult if inpossible to buy a property house.

I see this Thread was started some time back and wonder how things have gone for you and hope its positive.
 

Catlady

Senior Member
Location
Southern AZ
Will need 3 bedrooms because wife's daughter will move in with us to help take care of us. I'll be 78 next month, my wife is 80.

We first talked about buying a house but after some deep thinking on the subject I'm leaning hard toward renting.

I have a list of pros and cons in my head that support renting but before I mention my thoughts
Although personally I prefer owning, maybe in your situation it's better to rent. This way once the two of you pass, the daughter is free to move on or stay, and if she gets your inheritance, it will be much easier than having to deal with disposing of a house she may not want. Or, if things don't work out, it will be much easier to move and end the caretaker relationship. Talk to an elder lawyer for your peace of mind before you do anything.
 

Packerjohn

Packerjohn
Location
Canada
Rental rates go up, paid for stays paid for.
Yes, rental rates go up but so do property taxes, service persons, maintenance costs. Everything is going up all the time. Remember when you sell you have to deal with those real estate "professions" who keep smiling at you in their adds. Every time I moved & I have moved many times in my working life; it was always something like $17,000 for that smiling real estate agent.

When you rent you just give your notice at the end of the contract or be like me, just sublet & you only have the pay the movers. $1,000 CND paid for 2 guys to work 9 hours moving us. They were real nice. Property ownership makes a lot of sense for young couples in their 20s or 30s with little kiddies around but think again when you hit your 70s. Anyone around here "love" shoveling snow or climbing up a shaky ladders to clean leaves out of those eves troughs? LOL By the way, my brother has lived in the same house since the early 1970s. Guess, they will carry him out of this place when he croaks! Different strokes for different folks!
 

charry

Member
Location
UK
i think personally renting is like throwing it down a drain -if u can buy well within your money then I would '
nothing as good as owning your own home - do what you wish in it -and left to who ever u wish -
we have always had our place as the years past - never looked back on it good investment -so think hard =
and hope u settle in ok !


you never own your own home toffee.....even when you have the deeds in your hand......its alwaŷs the banks................any sign of an overdraught or in the red......or illness.......they will have your house as quick as a flash......😖...
 

charry

Member
Location
UK
we choose to rent now, as you never really own your own home.......since mikes stroke, its easier, to get maintenance jobs done, and ,we can just move within weeks......which we re doing now....fed up here, time to move on......hmm, i fancy a place with a lake now, near a forest.... instead of a beach......😉
 

Liberty

Senior Member
Location
Texas
Yes, rental rates go up but so do property taxes, service persons, maintenance costs. Everything is going up all the time. Remember when you sell you have to deal with those real estate "professions" who keep smiling at you in their adds. Every time I moved & I have moved many times in my working life; it was always something like $17,000 for that smiling real estate agent.

When you rent you just give your notice at the end of the contract or be like me, just sublet & you only have the pay the movers. $1,000 CND paid for 2 guys to work 9 hours moving us. They were real nice. Property ownership makes a lot of sense for young couples in their 20s or 30s with little kiddies around but think again when you hit your 70s. Anyone around here "love" shoveling snow or climbing up a shaky ladders to clean leaves out of those eves troughs? LOL By the way, my brother has lived in the same house since the early 1970s. Guess, they will carry him out of this place when he croaks! Different strokes for different folks!
We built our big joint in the mid 80's and are so fortunate maintenance is nil...we have a great groundsman (second generation now) that mows our property, when needed and the house itself is built like a bunker. Often think if we did live in a subdivision "stick house" we'd probably not care and would have moved by now. LOL!
 

Packerjohn

Packerjohn
Location
Canada
Consider safety! You are much safer in a condo than in some lonely house in the suburbs, generally speaking. Condos have excellent security system which are generally hard to break. I know everyone on my floor because of "Happy Hour" & coffee mornings. In many cities there are "home invasions" where muggers & all assorted low lives like druggies desperate for money for their next fix will enter your home & maybe kill you. Most seniors can offer zero resistance. I know my neighbours & they know me. I feel very safe. Yes, I'm aware that there are video cameras, bared wire, Doberman dogs & a good pump action shot gun by your bed at night but is this how you want to live? Shaking in your booths every time the wind blows a branch against you house. Not this ole' packer. LOL
 

Liberty

Senior Member
Location
Texas
Consider safety! You are much safer in a condo than in some lonely house in the suburbs, generally speaking. Condos have excellent security system which are generally hard to break. I know everyone on my floor because of "Happy Hour" & coffee mornings. In many cities there are "home invasions" where muggers & all assorted low lives like druggies desperate for money for their next fix will enter your home & maybe kill you. Most seniors can offer zero resistance. I know my neighbours & they know me. I feel very safe. Yes, I'm aware that there are video cameras, bared wire, Doberman dogs & a good pump action shot gun by your bed at night but is this how you want to live? Shaking in your booths every time the wind blows a branch against you house. Not this ole' packer. LOL
That would be horrible to live anywhere you'd have to worry about that drive by and/ or home invasion fear issues. Ever watch Law & Order? God bless them.
 
There's two points to consider. You are five years older than me. I'm not climbing up and down ladders, shoveling snow, etc. And neither will you be. If you buy, you will be paying others to do all kinds of chores. And finding those people ain't easy. You do have to consider your health problems. You are now the healthiest you will ever be. I face this problem, too. What happens if you or your wife needs to enter a care facility? No, your wife's daughter will not be able to care for a really needy person all by herself? Get that out of your mind right now. Sooner or later one of you is going into a home, leaving the other to cope with the upkeep of a three bedroom home. Nor do you understand how costy having you or your wife in a care facility will be. That 250 isn't going to last all that long. The other point is all financial. I don't know much about the housing situation in Arkansas., whether it is cheaper to rent or own. That is going to be the deciding factor. Your financial goal is to keep as much of that $250,000 as you can. I'm not sure plowing that money back into real estate, when you will need it in a few years is a good idea.
I recently spent 10 months in a hospital/ nursing home setting. One thing I would do is arrange for some one, maybe a lawyer, with power of attorney to take over your finances, etc in case you and your wife can't. I wasn't able to pay bills and things when I wasn't home.
 
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rkunsaw

Well-known Member
Original Poster
So much good advice and good points made on both sides. Renting would definitely be best for us at this point in our lives. Finding a suitable place for rent is a problem though, especially in a small town.
 

fmdog44

Senior Member
Location
Houston, Texas
Rental rates go up, paid for stays paid for.
Not true. Taxes for one. Home owners dues. Insurance rates go up. Maintenance costs from parts to contract labor never stop rising and real estate values can plummet. My home value went way up 5 years ago and then fell and continues to flatline and slip slightly. Between all the rising costs of owning versus what my home is worth now I will lose money.
 


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