Rent vs. Buy: Retiree edition!
April 18, 2013 8:39 AM Subscribe
Single retiree is selling a big paid-off house and asked me and huzzeh for help deciding whether or not it makes sense to rent an apartment or buy a condo. What questions should we consider to help make this decision?
posted by elizeh to work & money (17 answers total) 2 users marked this as a favorite
I think buying a condo makes more sense, but that's just a gut feeling, not an educated opinion. Can you help me think this through?
Factors that may or may not be relevant:
-Rents are expensive compared to selling prices in her city
-If buying, we'd advise buying in a (reliably) hot neighborhood to maximize the appreciation of the condo.
-She will be largely living off the proceeds of this house sale, as SS and pension do not cover much. Not sure if it makes sense to tie up that much money in real estate? Or maybe she could just make a big downpayment and get a cheap mortgage, even though she could buy outright?
-She's in pretty good health, but not great. Obviously there's no way to tell, but our working assumption is that she's got about 10 years of independent living ahead of her.
What else do we need to consider?