Each month, more than a quarter million Americans will turn the age of 65. This is typically the magic number when people start thinking about retirement, and some will also consider whether to downsize to save on space and money. Downsizing can offer tremendous benefits to a newly retired couple, especially if they are considering moving to a retirement hotspot like Charleston, SC.
One is obviously the amount of space needed. Ten or fifteen years ago, four bedrooms may have been necessary if there were a few children running around and others living at home. Now, all of that space may be unnecessary. Unused space requires maintenance and only forces an individual or couple to spend extra money on energy costs and taxes. In addition to that, those who are retiring may want to go somewhere else when they retire for lifestyle reasons, proximity of family, and cost of living.
If You Are Thinking about Downsizing Whether You Stay Nearby or Move, Should You Rent or Buy?
So you're ready to move out of the family home and get a small place on the beach in Isle of Palms or somewhere else to enjoy your retirement years. You'll now want to consider whether you would like to purchase the property or rent it out. In truth, there is no simple answer here, and each situation will be different. However, here are some questions you may want to ask your agent or accountant to help you make the best decision possible:
Do you like the idea of home ownership? If you have owned a home for many years, it may be a bit of shock if you start renting. You like to have complete control over your property, and you don’t mind taking care of small repairs. For others, though, the idea of never having to worry about a repair or upkeep costs can be a relief. Each has its positives and negatives, and you should certainly consider these points as you make your decision
Which will be more expensive? Each has its own advantages and disadvantages when it comes to expense. You usually have to put more upfront when you buy. However, you can also benefit from certain tax deductions, including mortgage interest and property taxes. When you rent, though, you don't have to worry about most repair expenses and some utilities may be free. However, again, you are not building equity and rent may be higher than a mortgage payment for the same home.
Do you plan on remaining in the new property for a few years? The initial costs of purchasing a home can be expensive depending on how much you want to put down as well as the closing costs involved. And don't forget about the home inspection and any initial repairs or upgrades you may need to make as well. Typically these costs are offset in a few years by the equity you build, but if you plan on leaving before then, you may want to rent instead.
Are you looking at houses in South Carolina? Contact one of our agents today, and we can help you find a fantastic place to call home –whether you decide to rent or buy.