Many of the savings that come from buying a home are linked to the accumulation of equity through long- term ownership, but for retirees with no heirs or who may be planning short stays, these benefits are not realized. Wall Street Journal staffer Anya Martin tallies the benefits of choosing to rent rather than own for retirees. (Subscription may be required.)
Besides from the home becoming an illiquid asset if there are no heirs to pass it on to, there are other reasons to rent such as the extra costs that come with owning a home:
What some retirees forget is thathomeownership is more than a mortgage payment, says Matthew Carbray, managing partner of Avon, Conn.-based Ridgeline Financial Partners. Other potentially pricey expenses include property taxes and condo-association fees. Don’t overlook repair and maintenance costs—especially for things like a new roof or air-conditioning unit, which would generally fall upon a landlord in a rental situation, he adds.