One of the biggest questions facing retirees is the choice between renting their home or buying. When making this decision, many considerations are involved ranging from the desire to pass along the home to potential heirs to the cost of buying set against the price of renting. For many, the desire to buy a home so the equity can be passed along to their heirs is strong which is what drives many purchasers. But for those having little desire to build up equity often means renting is an preferable option although other factors can come into play. In some areas, the cost of buying a home is low enough to make it worth a retirees while since a mortgage will be cheap enough compared to rent to make it the better financial option regardless of the equity issue. However, not all areas, particularly those that have a hot housing market, will have the same advantage so renting might be the best option in such as case. In any event, the best way to approach the decision is to pick a destination and intensively research the housing market in order to make the right decision.
See Kathryn Vasel, Is it better to buy or rent in retirement?, My East Tex, April 21, 2016.
