Should Baby Boomers Buy or Rent After Selling Their Houses?

<article class="post-795952 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-795952"><span class="entry-date">September 13, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Should Baby Boomers Buy or Rent After Selling Their Houses?</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Should+Baby+Boomers+Buy+or+Rent+After+Selling+Their+Houses%3F&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fshould-baby-boomers-buy-or-rent-after-selling-their-houses%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Should Baby Boomers Buy or Rent After Selling Their Houses? Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230913-Should-Baby-Boomers-Buy-or-Rent-After-Selling-Their-Houses.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about <a href="https://www.simplifyingthemarket.com/2023/09/04/why-its-still-a-sellers-market-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">selling your house</a>, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to <a href="https://www.simplifyingthemarket.com/2023/09/07/get-ready-for-smaller-more-affordable-homes/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">downsize</a> or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?</p>
<p>That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.</p>
<h4><strong>Expect Rents to Keep Going Up</strong></h4>
<p>The graph below uses <a href="https://www.census.gov/housing/hvs/files/currenthvspress.pdf" rel="noopener noreferrer" target="_blank">data</a> from the <em>Census</em> to show how rents have been climbing steadily since 1988:<a href="https://www.simplifyingthemarket.com/content/images/20230912/20230913-Median-Asking-Rent-Since-1988.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230912/20230913-Median-Asking-Rent-Since-1988.png"/></a>Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.</p>
<p>When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment.<strong> </strong>This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. <em>Freddie Mac</em> <a href="https://myhome.freddiemac.com/blog/homebuying/should-inflation-change-your-homebuying-plans" rel="noopener noreferrer" target="_blank">sums</a> it up like this:</p>
<blockquote><p><em>“. . . </em><strong><em>homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan</em></strong><em>. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”</em></p></blockquote>
<h4><strong>Owning Your Home Comes with Unique Benefits</strong></h4>
<p><a href="https://www.aarp.org/brandamp/anywhere-buy-instead-of-rent.html" rel="noopener noreferrer" target="_blank">According</a> to <em>AARP</em>, buying your next home is a better long-term strategy than renting:</p>
<blockquote><p><em>“Though each option has pros and cons, </em><strong><em>buying provides more pros, with a broader range of benefits</em></strong><em>.”</em></p></blockquote>
<p>To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:</p>
<ul>
<li><strong>Owning your home can help you </strong><a href="https://www.simplifyingthemarket.com/2023/08/15/equity-is-a-game-changer-for-homeowners-looking-to-sell/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><strong>save money</strong></a><strong> for the future.</strong> Your home, and the <a href="https://www.simplifyingthemarket.com/2023/09/11/planning-to-retire-your-equity-can-help-you-make-a-move/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">equity</a> you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life.</li>
<li><strong>You might not have to pay a monthly mortgage payment at all.</strong> If you have enough equity to <a href="https://www.simplifyingthemarket.com/2023/09/01/homeowners-have-a-lot-of-equity-right-now-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buy</a> your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief.</li>
<li><strong>Aging in place can be simpler.</strong> If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.</li>
</ul>
<h3>Bottom Line</h3>
<p>If you’re a baby boomer who’s wondering whether you should buy or rent your next home, <a href="https://www.simplifyingthemarket.com/2023/08/23/why-you-need-a-true-expert-in-todays-housing-market/" rel="noopener noreferrer" target="_blank">talk</a> to a reliable real estate agent for advice. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.</p>
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