If you are a Baby Boomer this is for you! Mostly have lived in your current house for a long time, and now you are ready for a change. There is a lot to consider when thinking about selling your house Are you going to stay nearby or want to start fresh in a different location altogether? Do you want to downsize or want more space?
However, the biggest and most important decision is whether you will buy your next home or choose to rent instead. This decision ultimately depends on what is currently happening in your life and what you want in the future.
If you are thinking about renting, – Expect Rents to Keep Going Up
The graph below uses data from the Census to show how rents have been climbing steadily since 1988.
Rents really have been going up consistently over the long run. If you choose to rent, there’s a risk that your rental payment will go up each time you renew your lease. You may not want to deal with a higher rental expense every year.
When you buy a home with a fixed-rate mortgage, you have a stable monthly housing payment and it stays that way for the duration of your loan This allows you to lock in your monthly payment for the duration of your home loan. Freddie Mac sums it up like this:
“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”
Owning Your Home Comes with Unique Benefits -According to AARP, buying your next home is a better long-term strategy than renting: “ buying provides more pros, with a broader range of benefits.” Here are a few benefits of homeownership:
When you own your home, it can help you save money for the future. Your home and the equity you build as a homeowner can provide generational wealth that could be passed on to loved ones, giving them a better life.
If you have enough equity to buy your next home outright from the sale of your previous house, you will not need a mortgage at all. You, of course, will still pay property taxes or maintenance fees; not having to worry about a monthly mortgage payment could be a big relief.
Another big factor is that aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.
Bottom Line If you’re a baby boomer who’s wondering whether you should buy or rent your next home, contact the Smith King Team. You can reach us at 702-460-5080. We can walk you through both situations and help you find what is best for you. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.
Keep in mind that whether you are interested in buying or selling a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. We have celebrated selling both New and Resale Homes for over thirty years.
We are here to answer any questions you might have; just email Jennifer at jennifer@smithteamlasvegas.com
Thanks and make it a terrific day.
