Renting forever?

vickiegaye · ‎09-30-2020

After 1 year of discussion, my husband & I moved to be closer to our son & his family, same state. We listed our home on a Wednesday & 2 days later, received a full price, cash offer.
We had previously looked at an over-55, independent apartment that we liked..long story short, there was an apartment available & we had 1 week to decide. So, we signed the lease 9 months ago & although we are happy with our new space, it seems real estate prices are MUCH higher that we expected in this area.
We are 74 years old, relatively good health, but do not feel that we want to buy a new home (smaller size about 1800 sq ft with 2-3 bedrooms) right now..that seems to be about 30% higher priced than it was a year ago.
My husband is 90% ok with staying where we are, but it seems a totally different feel as a renter, VS a home owner

We have worked very hard to make it seem like "home" but it's not the same to me.

We invested the profit from the home sale, so the $$ is available, but not sure we want to go through the process of buying another home at this stage of the game.
Has anyone else had this dilemma? Adding to the situation is moving at our age, not to mention COVID, it has been a tough year.

Let me know if any one has been through this & how it worked out, thanks.

Sooner · ‎03-10-2010

Your home is where you live and the main thing is are you happy there. I'd let that be the main factor. Do what makes you happy.

I seriously doubt home prices will come down a lot, and I think inflation is going to kick in--or already has. A home is a good investment if it is in a popular area.

Snowpuppy · ‎03-09-2010

Welcome to the boards!

I get what you are dealing with. Home prices here are skyrocketing and higher than 06-07. I live in a very rural but touristy area so all that get out of the big cities talk is very real.

Home prices will continue to climb this year. Next up, rental prices in many areas are going higher, too. People priced out of the market will rent and landlords will take advantage. Rental costs are not fixed and if your property changes hands you may not like the new owners terms. I don't want to be told by a landlord to move when I'm 80.

If you purchase you can always carry a small mortgage as a hedge against putting all your $ into a home purchase.

If you purchase again, can each of you live independently and comfortably without the other? Are each of you handy with minor chores and repairs or will you have to rely on someone? A condo may be an alternative for you.

You'll be guided to the right choice, I'm sure!

Foxxee · ‎10-03-2014

Welcome @vickiegaye.

You'll may get used to it and might be relieved not having responsibilities of maintaining a home, particularly as you get older.

Renting is spending money, not investing, but at your age that might not be important to you.

The housing market is hot right now, shortage of houses for sale, one of the reasons why prices are so high. Prices are more likely to go up, so keep that in mind about waiting too long.

You could begin to look around for a smaller house just out of curiosity to see how you feel. You might change your mind about wanting to move back into a house.

There's an over 55 development around 5-6 miles from my house. Houses are manufactured. Out of curiosity I went into a sample...very surprised at how nice it is, not that I plan on buying one. I'm staying put.

Landscaping is beautiful, curbs and sidewalks. Some have garages, others concrete driveways. A few had wheelchair ramps.

24 hour handyman on call, snow removal, and grass cutting. Community Center.

I asked the lady in the office who lives there. She said there were several retired engineers, a physician, pharmacist, IT techies, school teachers, and a variety of others married and those who lost their spouses.

Only downside is lots are rented. This was a few years ago when rent was $300 a month.

Katcat1 · ‎07-21-2011

@vickiegaye My Aunt and Uncle always rented. They had the money to buy buit never did. If you don't want the work with a home or the a home owner's fee with a condo than rent. Only you can make that decision. With renting all the appliances are the responsibility of the owner or any repairs.

kindness is strength

cotton4me · ‎03-09-2010

I recently moved to an over-55 independent living apartment, part of a continuing care community. I adjusted quickly and would not want the worries of home ownership again. There was always something that needed to be repaired or updated. It was constant. My husband could no longer do those things and needed to be on one level. He died last year so I’m on my own now. That’s something else to consider, can you maintain a home by yourself.

I feel like I have more freedom living in the apartment because I don’t have to worry about those things and can spend my time doing things I enjoy. I don’t have to worry about cooking unless I want to. They provide all the meals. They also clean the apartments once a week. They have many amenities and activities so one can be as involved as they choose to be. I know it's not for everyone. I feel safe here, a place where I can age. I find peace of mind in that.

Sweetbay magnolia · ‎04-14-2013

Though we currently own (with a mortgage, though), we are at a stage where both our surviving parents are more and more unable to maintain their own places, and we have many things that need to be done to our place ($$$).

It is truly a struggle sometimes, and the upkeep is constant. Ours is 1940 sq ft, 3 bed, 2.5 bath, two car garage, 1/2 acre. I love the place and I love my gardens but sometimes it just feels like too much. 8 years ago when we moved here it felt like freedom. DH is 6 years older than me and I see his energy waning (though he is in good health and active).

I don't know, real estate prices are crazy. It does remind me of the pre-2008 crash. Homes are being built on an old farm behind me that are "starting in the low $800s". What? For what? A production home way oversized for the lot. Nothing special about these places. Some will be larger and into the $1M+ range.

It used to be the likes of the Duponts that could afford that price tag. Now it seems to be the norm. I won't even get into the increase in my property taxes over the past several years. Outrageous.

If I were you, I would stay put and keep the option open. Houses are a lot of work. We lived at one time in a gorgeous apartment with beautiful views and aside from the fact that our rent kept going up, I did enjoy the maintenance factor. Though, our current mortgage is roughly the same as that rent payment, and it is nice to know it is our equity, not the landlord's.

Good luck to you, @vickiegaye

Cogito ergo sum

Meowingkitty · ‎06-19-2010

I would not rent unless I had no choice. Rents are going up like crazy in our area with a 3 bedroom 2 bath house normal 1700-2000 sq ft house renting for over $2000 a month. Plus if you live in in an HOA that goes up too. Mind you, these are normal houses, not on acreage or in an HOA or anything fancy. The house behind me is around 1700 sq ft and is renting for $2300 a month plus utilities. My entire house payment plus utilities never came close to that when I had a mortgage.On our Nextdoor app there was someone complaining that the landlord raised their rent $600 a month. My late aunt lived in an independent living facility and every year the rent was raised $2-300. Sure there is upkeep owning a home but I don't think it's constant. At least I own my house and only my taxes go up a bit every year. I would rather put money aside for upkeep and do what needs to be done.

LindaSal · ‎05-15-2014

@vickiegaye Two years ago we sold our 3000 sq foot home with 10 acres and downsized to a townhouse. We did look at an over 55 but opted out of that, reason being if something happened to us my kids are only in their 30's and they could not live there, they would have to sell. They are also not allowed to live with you. My daughter has some health issues and I was worried about the scenario that she gets worse in the future. Anyway, we do have HOA fees but they are reasonable and I have to say I love not having the yard work or snow shoveling anymore. If I were you I would stay put for a bit and wait it out if you can. The market is high now but will go down again and then that may be a time to buy again even if it is a condo type, which for us has worked out well. We have been discussing a retreat in Florida but are waiting it out for that.