Poll. Own or rent in retirement?

[honobob]

I couldn't find a previous poll concerning living arrangements in retirement. I'm also curious how much you think your housing cost will increase each year, if you're in the country or metro area and area of country.

 

[dex]

Sorry about that chief.

 

[waltwill8]

Kind of a no-brainer if you have a paid for house in a place that you like.
Could you rent a 3br/2ba home on a large lot in a small city for under $500/mo? My annual housing cost including water and garbage is less than $5k.

 

[W2R]

I presently own my own home in New Orleans. When I retire, I plan to move to a small town in Missouri. I am tentatively planning to rent for a while before buying there, just so that I can become more familiar with the area before buying. I checked "Am and will always be a home owner", even though I won't be, since it best described my point of view.

You said,

I'm also curious how much you think your housing cost will increase each year

. I would assume that you are referring to housing maintenance, taxes, and insurance, since my house is paid off. I expect them to increase at a rate higher than inflation after I have bought my retirement house.

I may rent just a small, cheap studio and leave most of my stuff in storage during the first half year or year there, in which case my housing costs would be decreased during that time.

 

[haha]

I've Been Thinking About This Lately

I resisted buying a house until I was about 35; I just didn't want the hassle or responsibility. Then I put in long years as a homeowner. I had kids, and I had fun doing stuff around the mini-farm with them. But now, I would only be interested in buying to protect my living cost over time. I hate houses, hate furniture, and hate the whole kit and caboodle. More properly, I don't hate this stuff; I like it in other people's houses or apartments. I just don't like to be bothered with it myself. (What an a-hole I am on this topic; even I can see that. )

I notice it in my two sons- one bought a house, one rents a condo. The renter has a much more carefree life, more time to do things for fun, and less need to waste time on crap like going to Home Depot. If I enter a Home Depot or Lowe's or any of them pretty quickly I get sweaty and feel like I need a drink. And I used to even make my own furniture. I was a whiz making jigs for my table saw, etc. But it didn’t last beyond the family growing up.

My only doubt about continuing as a renter is that I live in the absolute most desirable part of a very desirable city, so I could get pinched by rent increases. A condo or co-op would protect me from most of that. Another factor is neighbors. In my professionally managed building people have passed a criminal records check. In a condo, owners aren't vetted like this, and they often don't vet their sub-renters well at all. So I am not sure yet about my eventual plans.

I do know that every time I see our manager doing some chore or other I feel so glad that he has to do it, and not me. I just take a walk or go visit someone instead.

Ha

 

[cute fuzzy bunny]

If I enter a Home Depot or Lowe's or any of them pretty quickly I get sweaty and feel like I need a drink.

I've said for years that any home improvement store could pad out their profit margins by adding a booze aisle. I mean, who doesnt want to pick up a six pack to sip on when they're done fixing that whozamajiggy?

 

[Zoocat]

I've been a homeowner for about 23 years with one mercifully short period as a renter immediately after my divorce. Owning a townhome has some mixed benefits. I have control of my residence but no control over who my neighbors are. Fifty percent are renters,most of them twenty-somethings. Also, I have control of and freedom with my interior, but the exterior of the building is subject to the varying abilities of the HOA and management, as well as the limitations of the HOA budget.

So far I haven't been able to figure out a better alternative. Owning a house seems like an overwhelming burden. Renting as a dog owner is a sketchy proposition. Alas!

 

[growing_older]

It's not just the "owning" my house that I want for retirement, it's the "fully paid for" that keeps cash flow needs so low. Maintenance and taxes will likely rise faster than inflation but if all else fails, I can tap equity or sell and fall back to renting. It seems to me to add extra safety to my retirement plans this way.

 

[W2R]

I've been a homeowner for about 23 years with one mercifully short period as a renter immediately after my divorce. Owning a townhome has some mixed benefits. I have control of my residence but no control over who my neighbors are. Fifty percent are renters,most of them twenty-somethings. Also, I have control of and freedom with my interior, but the exterior of the building is subject to the varying abilities of the HOA and management, as well as the limitations of the HOA budget.

So far I haven't been able to figure out a better alternative. Owning a house seems like an overwhelming burden. Renting as a dog owner is a sketchy proposition. Alas!

Renting as a dog owner is very difficult these days, from what I understand.

For me, owning a house is a lot better now that I can afford a lawn guy. But then, I don't like to travel like you do.

Maybe another kind of condo would suit you better - - perhaps one in a planned community, and maybe laid out more like a house or duplex, but with condo exterior care and convenience? My brother had one like that in Florida, and it seemed like a good arrangement for a traveler. His was a duplex condo in a planned golf course community, and his neighbor was a pleasant snowbird widow so he had no problems with it (other than the high fees). The community did all the exterior gardening and maintenance. He was a little miffed about all the rules, but that's just the way he is.

 

[W2R]

It's not just the "owning" my house that I want for retirement, it's the "fully paid for" that keeps cash flow needs so low. Maintenance and taxes will likely rise faster than inflation but if all else fails, I can tap equity or sell and fall back to renting. It seems to me to add extra safety to my retirement plans this way.

I couldn't agree more. Also, I am trying to avoid living in a development with a homeowners' association, fees, and possible assessments, in order to keep both the cash flow and potential annoyances as low as possible.

 

[youbet]

Kind of a no-brainer if you have a paid for house in a place that you like.
Could you rent a 3br/2ba home on a large lot in a small city for under $500/mo? My annual housing cost including water and garbage is less than $5k.

Does the $500/mo include the opportunity cost of the cash you have tied up in the house?

I'm a home owner and like it that way. But I'm also a realist and understand the bux I have tied up in the house could be earning returns if invested.

 

[Khan]

Been a home owner for 29 years (detached single,~1000 sf, long paid for, less than $1000/yr property tax).

I'll stay for now (at least while the cat lives).

In the future: who knows: condo, RV, senior rental...

 

[Ronstar]

probably stay a homeowner until I'm too old and decrepit to fix things around the house and do yard work

 

[donheff]

Will probably stay a homeowner for the duration since we like the townhouse and want to stay in the neighborhood. But I sympathize with HaHa's phobias. I would really appreciate the luxury of calling the super when something goes wrong. There are a lot of little things that it is hard to find someone to fix but if you are hand tool handicapped (like me) a DIY job is often an invitation to later problems.

 

[tightasadrum]

DW wanted to sell suburban house and move awhile back, so I agreed. My criteria was either move into town and have no yard, roof and house stuff to be concerned with, or move to the country with enough land to live a more rural lifestyle. She picked the country. With 8.5 arces on a lake it fit the plan nicely, but the house is bigger and more expensive than we really need. But DW loves it, so ...

After living it this setting for over a year, I expect maintenance costs will be much higher than any other alternative, even after age 65 when school taxes go away. So there is definitely a price to pay for the "perfect" setting. We'll start a garden for fresh vegetables, but I've never been convinced that it really saves much money after seed, fuel, fertilizer etc.

Neighbors can be an issue no matter where you live. You just make the best of it.

I plan to start to travel next year (bought my first tickets to fly across the big pond yesterday), so owning any kind of property will be a problem (and I have rental property also), not to mention the PETS!! We make our lives as simple or as complicated as we choose to make it in order to live in a way that gives us the most individual pleasure. Simple: single, no pets, rent small, less stuff. Complex: married, kids, pets, own home(s), have lots of stuff. Pick your poison.

 

[Orchidflower]

I have this anxiety ridden feeling that if I don't actually own what I live it then someone is able to ask me to move, so I will always have my own little piece of privacy I guess.
Apartments have restrictions on painting wall and all sorts of rules. Guess I am not a rule-oriented kind of gal, so I say own my own place.

 

[kcowan]

I owned a home for 30 years and loved it until the last 5 years. All the upkeep finally started to wear on me (acreage with 5000sq.ft home).

For the last 10 years, we have rented a nice penthouse and we love the freedom, proximity to shopping, the beach and parks, handy transit, 10 minutes to downtown. Plus the equity from the house sale ($535k) has returned a nice income.

OTOH we have rented our snowbird home for 10 years (two months), but next year we intend to spend 6 months there, so we purchased our Casa in the sun because the economics made sense. I am looking forward to some Home Depot trips until we get it personalized, but it should be manageable because it is a condo. Oh and it has proximity to shopping, the beach and jungle, handy transit, 3 minutes to downtown.

 

[Zoocat]

Maybe another kind of condo would suit you better - - perhaps one in a planned community, and maybe laid out more like a house or duplex, but with condo exterior care and convenience? My brother had one like that in Florida, and it seemed like a good arrangement for a traveler. His was a duplex condo in a planned golf course community, and his neighbor was a pleasant snowbird widow so he had no problems with it (other than the high fees). The community did all the exterior gardening and maintenance. He was a little miffed about all the rules, but that's just the way he is.

Thanks for the suggestion, Want2Retire. I would never live in a condo which would be even more obnoxious than my townhome.

But I'd like to live in a patio home community, and if I could find an affordable place like that I'd go for it. Unfortunately, that's unlikely as I live in a high priced area and I'm not inclined to move very far. Although before real estate tanked, an area builder was planning a new community with patio homes and a HOA. Who knows if it will happen now?

 

[mountaintosea]

Couldn't quite answer this poll. Right now I own. I'm not sure what I will do in the future. Renting is extremely attractive due to being able to lock up and leave. But the rent increases are not. Having a small house that is paid for, is extremely attractive but upkeep is not. Right now I have an old cat and dog. So will decide later I guess.

 

[lazygood4nothinbum]

i enjoyed this house when i was fixing it up and planting the garden and working to improve the neighborhood. now the house is mostly done (i left some stuff for the next guy). the garden is overdone (the next guy's gonna love it). and the neighborhood has become so successful that it is no longer where i want to live.

i love the idea of living overseas but i don't think i'd be comfortable purchasing property there. recently i have come to realize that i might be able to move aboard and live overseas. that way i could own sort of my house, live overseas, have advantage of the cost of living savings (which actually seem magnified: cost of renting here vs cost of renting overseas as compared to cost of boating here vs cost of boating overseas).

if i don't like my neighbors or even the neighborhood i'd always be able to move and i'd maintain some cost control with the ability to move to cheaper cruising grounds. how convenient that those cheaper cruising grounds are often the most exotic & beautiful of locations. now all i need is a mate. anyone interested?

 

[mountaintosea]

Lazy,
From what I've learned of the cruising world, buy a boat and the mates will find you! I dated a guy who spent his entire life sailing the world. He sailed his own boat ,other people's boats, you name it. He decided to settle down get a degree in Engineering and work for a while (that is when I met him). He was actually on his way out as he missed the cruising life. (I'm prone to motion sickness.) But I can certainly understand the draw to such a life. It seemed like an incredibly free and interesting life! For a while I met him in different ports on his way to Australia. There's a whole community out there. It was fascinating to say the least!

 

[lazygood4nothinbum]

thanx mountaintosea. you might be right and i might just be using this as an excuse to hold myself back but my concern, as it overshadows so often in my life, is my sexual orientation. just from a practical approach though, odds are i'd have a better chance to find someone on land. i just have to make sure they can swim. "hey stud. what's your sign? am i your type? can ya swim? wanna sail around the world for the rest of your life?"

so i try to find middle ground. maybe first a few years on land to give that a chance and then head to sea. i suppose i wouldn't feel so rushed if i wasn't 50 already and the looks weren't fading fast and there wasn't so little youth left of me. good thing i'm still immature or i'd be worried.

i guess eventually you have to live your life in a way that makes you happiest and then if someone is able to join you so much the better.

 

[Peaceful_Warrior]

I couldn't agree more. Also, I am trying to avoid living in a development with a homeowners' association, fees, and possible assessments, in order to keep both the cash flow and potential annoyances as low as possible.

When HOAs are run well, I don't have problems with them. So far the two I've been a part of have been pretty good. Our condo HOA had low costs and was pretty relaxed in general. Current HOA has average costs, but also covers re-roofing, external painting, and landscaping on our SFR. Neither have had any assessments in quite a while (not since I've owned or even several years prior)

 

[W2R]

When HOAs are run well, I don't have problems with them. So far the two I've been a part of have been pretty good. Our condo HOA had low costs and was pretty relaxed in general. Current HOA has average costs, but also covers re-roofing, external painting, and landscaping on our SFR. Neither have had any assessments in quite a while (not since I've owned or even several years prior)

But how do you know for sure that they are well run, and will be in the future, before you buy and commit to (hopefully) a lifetime living there? Do you really trust your real estate agent or other residents (who may be trying to justify their decisions) on something as important as that? I wouldn't. I really don't like the control issues that HOA's often seem to be able to exert on a whim. And just when you haven't had any assessments is when the Big One could arise.

OK, that is the argument on one side. Still, I have not totally ruled out living somewhere with an HOA simply because with some of them, I wouldn't have to deal with the lawn and yard at all. To me, the only purpose of a yard is to provide separation from one's neighbors. I don't actually use my yard so it's a pain in the rear to keep it looking nice. If I don't have that sort of arrangement I will probably hire a landscaping company to take care of the yard.

 

[cute fuzzy bunny]

Ask some of the neighbors what the HOA is like. My experiences in condos was mixed and in home communities it was universally awful.

Lawn service is realllly cheap compared to HOA dues. A lot of major exterior renovations require special assessments, so you end up paying for the work anyhow. One condo association I was in the "board" wasnt that interested in having a lot of meetings or enacting new nazi/nanny rules. But they took care of major problems and kept the place fixed up. My last HOA would for some reason allow major problem residents to continue driving people out of the neighborhood, and then would suddenly spastically attack a good resident for some oddball issue. Remember the "yellow house" debacle that was in the national news a couple of years back? Yep, that HOA...

A Yellow House? Well, We Can't Have That - New York Times

The house is still yellow, btw...

No more HOA's for me. They seem to often draw the sort of busybodies that want to tell everyone else how to live.