Is It Better for Retirees to Rent or Own? | Ovation Sienna Hills

Is It Better for Retirees to Rent or Own?

For many older adults, getting the most out of their retirement means downsizing to a smaller and more manageable space. But when the time to move comes, they find themselves tackling a challenging question: Is it better for retirees to own or rent?

The answer to this question depends on your personal priorities and financials. This blog sets out to evaluate the pros and cons of renting and owning while highlighting a community in St. George, Utah, where residents enjoy all the advantages of stress-free senior living.

Key Takeaways

  • Renting and owning each come with positives and negatives. The more you understand these various factors, the more informed your decision will be.
  • While renting and owning have different financial considerations, they are alike in that they both require maintaining a monthly budget. Determining that budget before deciding to either rent or own is an important part of the planning process.
  • It is important to look beyond surface costs. Homeownership, for instance, often means more unanticipated expenses. A pipe may burst or the roof may leak. When making your decision, factor in these costs.
  • Is it better for retirees to rent or own? Again, there is no straightforward answer. While one option may be more appropriate or desirable for one person, the other may be more suitable for someone else.

The Benefits of Renting in Retirement

If you’ve always owned a home, the prospect of becoming a renter in your retirement years may be unsettling. After all, most people associate homeownership with stability and security. However, there are tradeoffs that go along with that stability and security.

First and foremost, homeownership means that you are tied to a specific living situation whereas renting affords more freedom in retirement. Instead of spending your time worrying about mortgage payments and repairs, renting allows you to spend your time exactly how you want to spend it.

Additionally, while homeownership can be an investment, this isn’t always the case, especially during times of market vulnerability. Many financial experts suggest that renting is preferable because it allows you to decide where to invest your money. Also, if funds are tight, renting gives you more disposal capital so you can enjoy a higher quality of life.

Renting is also desirable from a financial perspective because the price tag tends to be stable from month to month. Whereas a homeowner must front an unexpected roof repair, for instance, these kinds of expenses are covered by the landlord for renters. Aging-in-place can also demand unexpected home renovations. For instance, if an older adult is suddenly wheelchair-bound, hallways may need to be widened or a wheelchair accessible shower installed.

The Pros of Renting

Renting in retirement can be advantageous for older adults who are seeking freedom. Other pros include:

  • You will not be responsible for any unexpected or costly repairs. Your landlord will handle these.
  • Renting means you will have liquid assets to invest elsewhere. You will also have more cash on hand in case of an emergency.
  • Your wellness needs may change, requiring home renovations. Should this occur while renting, you can simply move to a space that better accommodates your needs.

The Cons of Renting

  • Homeownership affords a sense of pride that renting, to some, does not.
  • If the real estate market is trending upward, renting could be viewed as a missed investment opportunity.
  • Should wellness needs change, renting does not allow individuals to customize their space. Rather, older adults would need to relocate to a new space.

The Benefits of Homeownership in Retirement

If you’ve ever owned your own home, you know that homeownership comes with a unique sense of pride. And with good reason: buying a home is a huge accomplishment, and homes can also have tremendous sentimental value for families. Many older adults enjoy the sense of security that comes with homeownership, even though homeownership often means more stress and responsibilities.

From a financial perspective, homes can be valuable assets during a booming real estate market. In less certain markets, however, homeownership can be risky. If you don’t build enough equity, you can find yourself in a financially precarious position at a time in your life when security is a paramount concern.

Speaking of security, even if you do buy a home under the very best market conditions, stability is never a guarantee when you consider the likelihood of age-related changes. These age-related changes may mandate additional at-home care or renovations. Many older adults overlook these expensive, unexpected costs.

The Pros of Homeownership

Homeownership often affords a sense of pride. After all, maintaining a house is a huge responsibility. Other advantages to homeownership include:

  • Homes can be a valuable asset when the real estate market is trending upward.
  • Calling a space your own can imbue feelings of stability and security.
  • Should your medical situation change, owning a home allows you to make any needed home renovations. If an older adult is wheelchair-bound, for instance, a wheelchair accessible shower could be installed.

The Cons of Homeownership

Aging-in-place has its downsides, however. The negatives of owning a home in retirement include:

  • As a homeowner, you are responsible for all unexpected and costly repairs. You are also responsible for making home renovations if your wellness needs change.
  • Owning a home means you are tied to a monthly mortgage. There is less flexibility, should you want to make a move later in your life.
  • When you purchase a home, you are investing a significant amount of capital. This often means you have less cash on hand to deal with month-to-month expenses.

Why Retire at Ovation Sienna Hills

Located in St. George, Utah, Ovation Sienna Hills offers an appealing senior living option for active, older adults. Bringing together independent living, assisted living, and memory care in one dynamic environment, Ovation Sienna Hills affords residents the opportunity to live independently while being reassured that, should their wellness needs change, additional levels of care are available.

Worry-free living is prioritized at Ovation Sienna Hills. This starts with your choice of high-end luxury apartments and individual homes. You will also be offered robust community programming, 24/7 security, and access to a range of life-boosting services and amenities. What’s more, you will only pay one monthly fee.

If you feel torn between renting or buying a home for retirement, Ovation Sienna Hills provides the best of both worlds with private, independent living in a community setting. Factor in its premier location in one of the country’s most popular resort towns, and senior living at Ovation Sienna Hills perfectly encapsulates what retirement living can and should be. Learn more by contacting us today!