Profile picture for vintagelace

At 58 years old, should I buy or rent?

Looking for home around $200,000 and have $50,000 for down payment. I'm retiring soon and will bring home $3700 a month. I have no bills. Spoke to a lender and house payment would be around $1,000. Or should I rent at approximately $1800 a month. My age is my big concern as I know I won't be around to ever pay the house off.
  • March 20 2012 - US
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Answers (5)

I think buying is always the better option.  With interest rates and property value being so low, why pay double to rent something?  You may not be around to pay it off but thats what life insurance is for.  Also buying in such a drepressed market imagine how much equity could be in your home in 20 years.  It could be a great inheritance for your loved ones.
  • March 21 2012
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Profile picture for Ofe Polack
I do not know you, but the older I get the less I enjoy doing maintenance in my home.  You may have been using the word "home" in a generic way, are you talking about buying a condo or a single home?  If you have a financial consultant or accountant, why don't you run the different scenarios by them.  Either way, its a matter of preference.  Have you also thought about reverse mortgage purchase? 
  • March 21 2012
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Profile picture for the_country_hick
How much would your payment be on a 15 year fixed rate mortgage?

That you should be able to pay off and then live almost rent free.

Do not forget that buying a house will cause you to spend more money on taxes, maintenance, heat, a/c, and electricity compared to a smaller apartment. The $1,000 a month payment is not what it really costs to buy a house.

Perhaps the blogs in the links below can be of help deciding which way to go.

"Does it make more sense to buy, or to rent? Here is the way to find out for sure."

"Why rent if you could buy for less money? Valid reasons inside."

Neither one says expressly to rent or to buy. They simply point out some factors you may not have considered to help you make a decision.
  • March 20 2012
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One advantage renting does have is that, for the most part, you would not have to pay for many expenses a homeowner would normally pay for.  e.g. taxes (property/school), homeowner insurance, maintenance costs (upkeep on furnace/AC/ and EVERYTHING else you have to maintain around a house.)  So you should consider those expenses in the $1000 vs. $1800 comparison.
  • March 20 2012
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You don't have to pay the house off.  Go to an estate atty. When your heirs sell it, the title will be cleared and they will get whats left.  If it was me, I'd pay $1000/month over $1800/month any day.  Im not a financial advisor or atty, so check with both, but it sounds like you already know what to do.
  • March 20 2012
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