This is one we are hearing from more and more of our clients. They are asking us if they should rent or buy after they sell the family home and retire. After all, they no longer need the big home. Their kids have moved and have started their own families. Sometimes they stay local, sometimes they spread out all over the country. But after the family home has sold, where should they go?
We always ask if they want to stay local or not? New Jersey winters are cold, someplace warmer may be nice. Or maybe they want to follow the kids to where they went, and stay near family.
If they stay local, what are their goals? After selling the home, do they have enough cash to purchase a new home, perhaps in an adult community? And if yes, will they have the cash and income to be able to pay health care, or travel do whatever it is they want to do. If yes, that is great. If not, maybe renting is a viable option.
And if they elect to follow the kids, maybe renting, at least for a while, would allow them to try the area and see if they like it. If they do, it’s may be time to hunt for a new house to purchase. If not, it’s simple to pack up and leave.
We now pause for a word from our sponsors, Bunny and Art Reiman – Realtors. When you decide it’s time to sell your home and buy or rent the new one, call the Reimans. They have sold hundreds of homes in the area, and can sell yours also. They are familiar with all of the adult communities in the area if that’s the path you wish to follow. And if you decide to leave the area, they can refer you to a good Realtor wherever it is you wish to move to. Call them at 732-616-6226 or visit www.55plusinmonmouth.com
It may come down to a decision that they want someone else to be responsible for the work and expense of maintaining the home. But it may not make financial sense to rent. You see, it is usually less expensive to own than to rent a similar home.
But if they do decide to become renters, they are in good company. More baby boomers than ever are expected to rent their next homes by 2020. More specifically, more than 5 million baby boomers are expected to follow this path.