For many seniors, the decision to make a move after retirement comes due to a change in income and the need to downsize a bit. For some, buying a new home is a way to ensure that they are leaving something of value to their children or grandchildren. Building equity and having a place that is all your own, to do with as you wish, is one of the many benefits of owning a home.
The process is a big one, however, and shouldn’t be entered into lightly. Think about your budget and how much space you need, as well as location; do you want a home that’s not too far from town? Or a home that’s only one story for ease of mobility? Write down all the things you want in a home and talk with your spouse or family members about each person’s needs.
Here are some of the best reasons to buy a home rather than renting.
You’ll be making a good investment
Buying a home is an investment, not only for your own future, but for the future of your family as well. While some people invest in stocks, buying a home means you get the benefit of the home’s entire value rather than earning on only your down payment.
You also get tax benefits from owning a home, such as writing off your mortgage interest and property taxes every year. These benefits often make owning a home as cheap or even cheaper than renting.
For more information on how buying can help you save money, read on here.
You can keep your monthly payment the same
Rent amounts will increase over time, but if you lock in your interest amount at signing, you can ensure your mortgage payment stays the same unless you decide to refinance. This will help you stick to a budget and keep you on track no matter what life throws at you.
You can go green
Renters can certainly make improvements in their lifestyle that will allow them to live in a more energy efficient way, but homeowners can think on a bigger scale. Because the house is yours to do with as you wish, you can install energy-saving appliances, solar panels that will keep you from overspending on heating and electricity bills, and an energy efficient roof. Not only will these improvements help the environment, but they can save you money all year round.
You can incorporate home automation
Technology continues to explode these days, and there are so many products on the market that can benefit senior homeowners. Self-adjusting thermostats will help you keep your utility bills in check, while some of the latest home security systems you can install yourself and monitor from your computer, smartphone, or tablet. There are also new options for lighting that enable you to adjust your lighting from an app whether you’re at home or away. The available options are seemingly endless and offer a homeowner a safer, more efficient home.
Homeowners tend to save more money than renters do, in part because they know they need to be responsible and put cash away for unforeseen circumstances, such as when the air conditioning goes on the fritz or when they need to buy a new appliance. These occurrences aren’t something a homeowner wants to think about, but it’s important to remember that unplanned things happen from time to time. Socking away some savings will ensure that you can take care of these things without too much stress.
“When you rent, the landlord picks up the taxes, insurance, maintenance and sometimes utilities. If you buy, plan on replacing the water heater some years, the back fence other years, the roof occasionally…if you can do some of it yourself, your cash outlays will be much less than the landlord’s. And you can do it yourself if you’re be willing to learn. Try Googling “leaky faucet” and you’ll find plenty of advice,” writes Bill Conerly of Forbes.
Buying a home is a big decision, and it takes a lot of research and planning to find the right place for you. However, if you’re tired of renting and feel that you’re ready to make the move to home ownership, the benefits can certainly outweigh the negatives.