Buy Or Rent a Home
March 9, 2010 9:18 AM Subscribe
Should mid-sixties semi-retirees buy a condo or rent a house?
posted by Elsie to Home & Garden (5 answers total) 2 users marked this as a favorite
Similar questions on Mefi go back to 2008, so I'd like more input on the current buy or rent ratios in this ongoing volatile real estate market. I can't find an online buy/rent calculator that takes into account an all-cash home purchase. Probably stay put for 10 or fewer years. The numbers:
Buy a condo for $275,000 CASH with $500/mo. covering maintenance and real estate taxes. No mortgage.
OR: Rent a house for $1800 a month. All house maintenance and taxes covered in rent.
The cash is currently earning about 1.5% (UGH). It is not retirement money.
Tax bracket is 10%. Living off monthly social security of $2000 a month, plus another $3000 a month of freelance income, with just under a million in untouched retirement funds earning an abysmal 1.5%. Will probably start taking out 1-2% in the next three years.
Quality of life is about the same for both current rental and condo.