I'm older now but I remember renting apartments when I was in my 20s. It didn't take long for me to get sick of coming home from work to find a letter on my door notifying me of a rent increase. I knew then that I would buy a home and I did. My mortgage is paid off now. I plan to replace my roof and make some other improvements around the time I retire so that I can enjoy my paid-for home for the rest of my life. I know that different things work for different people, but I can't imagine being out there vulnerable to landlords who can raise my rent as much as they want whenever they want.

@dhammer6715

6 ай бұрын

Property taxes and insurance usually increase more than rent, just saying.

@allthingsnu4673

6 ай бұрын

@@dhammer6715 It depends on where you live. Currently, my property taxes are $1,107 and insurance is $2,091.

@dhammer6715

6 ай бұрын

Great tax rate! However if your house goes up in value, the taxes and insurance go up accordingly. Some homestead protections can reduce that increase. But, are $100/mo rent increases more or less than a similar property’s tax and insurance increase? Btw, my taxes were $19k and insurance was $1700 last year. I sold and now rent waiting for a crash, hopefully.

@allthingsnu4673

6 ай бұрын

@@dhammer6715 Those taxes are really high but I guess that's normal in some parts of the country. It helps me to understand why some people favor renting over buying. I just get very concerned about renters when I hear news of rental rates increasing so much that people are becoming homeless or starting to live in vans/RVs.

@dhammer6715

6 ай бұрын

True, being at the mercy of a landlord can be brutal. However, we weigh that against being at the mercy of the local governmental taxing authority, the lenders, and the insurers. Now we have Wallstreet and other corporate investors buying up housing at astronomical prices and only renting them out for astronomical rates. All around this is getting ugly and reminds me of 2006. I will wait this out for a while and pounce on a great deal.

These young people....they must think once you retire you soon will die and do not consider 30 or more years of living and paying increased rents into consideration. Rent has tripled at the very least in the last 30 years.

Totally agree. Aside from the expense issue, there is a peace-of-mind benefit from renting that cannot be quantified in terms of dollars, imo. People like to say they own their home "free and clear" once they pay off a mortgage, but even then, there are plenty of expenses like property taxes, insurance, and REPAIRS and upkeep that can quickly derail you. Plus me personally, I LOVE the idea of being able to move if the area I'm in changes drastically or even if I don't like my neighbors (lol). Can't do that easily if you own (selling and then buying another home is no walk in the park). I cannot WAIT to leave behind the continual costs of upkeep and repairs (not to mention the looming wonder of when the next repair will be needed). Super convenient. I agree it's not right for all (probably varies a lot based on where you live and the COL in your area) -- but it's refreshing to hear someone actually say renting may be a better option -- not just for retirement, but overall. (I also think the "building equity" argument is flawed since those equations don't seem to take into account the years of taxes, insurance, and repair costs ... just the buy and sell prices, which is horribly inaccurate.) I DO agree that it's certainly ALWAYS more beneficial for the mortgage industry for people to own. ;-)

@randomvideos3674

2 жыл бұрын

Because u cant save money

@Bucksboogie

2 жыл бұрын

If you manage to break even in life, you've won, wouldn't you say?

@Bucksboogie

2 жыл бұрын

You will never break even paying someone else's mortgage by renting

@randomvideos3674

2 жыл бұрын

You must not be able to purchase a home, or you bought to high

@Truthfinder1

8 ай бұрын

What you and other people don’t realize when we’re renting, is that property tax, repairs and landscaping is all added and built into your rent. I’m so sorry to burst your bubble. Those reasons i just mentioned is why your rent constantly goes up often.😂😂😂😂. You also have rent the rest of your life, whereas I do not since my house is paided off in full🎉🎉🎉🎉

Well my co workers rent are higher than my mortgage. My house is larger than their apartment unit. Lately the rent increase are sometimes over 100%.

@griggins6205

9 ай бұрын

Exactly. Rental prices are insanely high across the board. I can take 3/4 equity in my current home, downsize into a new home for cash. Can’t imagine a scenario where renting would be better.

Every persons situation is different ,there are no cookie cutter solutions.I see people here thinking it is a horrible idea ,but think it through,we have taxes,less write offs, utilities which are acting like taxes these days like (water ,sewage , electric and gas) We have general maintenence , major repairs come up like roofs ,water tanks,heating and cooling systems the list goes on. Selling our homes and keeping a cheap vacation property or just selling all and having a turnkey apartment so we can travel are options we are weighing. It all depends on each persons situation and what they want or can do.

@randomvideos3674

2 жыл бұрын

It boils dow to if you're giid with youre money

It's a personal choice if you have the option. Some people prefer it. Some don't want to rent and some want a house and yard as well.

strange way to look at it... your rent could rise sharply with inflation at the end of your lease as well similar to what is happening now, the thing is that you can't keep moving your residence every time your landlord decides to jack up the rent 10-20% or whatever, that is incredibly disruptive... much more than your roof leaking.

What if I don't have a mortgage payment. I am going into retirement with no outstanding debt other than living expenses, so your advice doesn't apply to me.

@patsypryor9850

3 жыл бұрын

I am in this same situation,but I also have an older home that is a lot of upkeep and sits on a "mow me its only an acre" when my husband was alive I never worried about fix and mow ,and we never paid anybody to do anything.He could do it all. he even admitted once that not having all that grass would be good,but he loved gardening as a hobby more so we stayed. I'm stuck .

@latsnojokelee6434

2 жыл бұрын

Yeah, I have a relative who lives in a condo. On the one hand, the condos paid off which is good because this person is on fixed income. But on the other hand, the HOA Has gone up considerably, the taxes keep going up, the carpeting is now on it’s last leg, the bathroom had to be converted for an elderly person, etc. So it’s hard to know what the real answer is.

@itguru2037

3 ай бұрын

Yes it does. You still have to pay taxes insurance repairs HOA pest control sewer etc.

I'd rather have housing costs that are low and variable than high and consistent.

@MotleyFool

5 жыл бұрын

Yes, you get it!

@neptasur

5 жыл бұрын

@@MotleyFool But this is exactly what your quest in the video denies.

@dondatrader5609

Жыл бұрын

@@neptasur 😂

I agree because maintenance on a home at 80 is ridiculous

well you wouldn't want to be still paying off a mortgage when retired, if you have paid off your home then the money saved from not paying on mortgage repayments can then be used for repairs etc. This is complete rubbish, if you rent you can be kicked out anytime the landlord decides

@itguru2037

3 ай бұрын

Where? Rent an apartment and this will not happen

Paying rent during retirement is like paying a mortgage-both are bad ideas. Your house should be paid for by the time you retire (or you should work until it is or downsize) so your regular monthly expenses should be a lot lower in retirement. And of course you better own your car with no loans and not be leasing, unless you are an idiot.

@76482

5 жыл бұрын

Exactly!!!

@JC-21470

3 жыл бұрын

Disagree, that is the traditional thought about it for sure, but there are very good reasons to rent some or for a while in retirement and everyone's situation is not like yours nor are their plans for retirement all like your plan. See my comments above for other reasons not mentioned in the video.

@billyrayband

3 жыл бұрын

@@JC-21470 certainly there are reasons for some to make other choices. But home ownership is a great form of asset stability during retirement, better than owning bonds for sure. Frequent traveling would be a good reason not to own. Downsizing is a great option also, I did that.

So what next, Living in a van or dog house

@itguru2037

3 ай бұрын

People do this now

Rent here in New Zealand for a 3 bedroom house is the same each week as the pension is for a couple in retirement. That means the couple can live in a house but have no money for anything else. Stupid logic this lady has.

put yourself at the mercy of Blackrock & Co because your roof may leak, or "something" talk about trading a dollar for a quarter

Where we live, the rental and sale markets are different. You can rent a home cheaper than the carrying costs of owning it, at least if you factor in mortgage, maintenance and taxes. Plus, selling now means you’ve accumulated a big pile of equity that can be used to fund your rent. Renting also gives you more flexibility in retirement.

Interesting take, and the points about unexpected costs are well made. One counter point would be that rents will rise over time (in a stable way, for sure), while mortgage and taxes will not. So by renting, you're guaranteed to have your costs go up, it's just that they're not a surprise. As a soon-to-be retiree, one aspect of renting that appeals to me (I currently own) is that my wife and I (we both love traveling) could pick up and move to another city/state/country easily and as often as we want if we rent. Her interest in this video was purely financial, but renting gives a greater sense of freedom of location. (not that I'll be able to convince my wife of this...)

@allencole6568

5 жыл бұрын

I'm considering selling because I plan to end my working career doing travel for consulting jobs, then likely settle down near where I am now. I'm reconsidering now after a friend who was retired in San Francisco lost his rent controlled housing. He had to move out of SF because even 'low cost subsidized' housing in the SF Bay Area cost more than his total monthly income.

@dallasjohnson3023

5 жыл бұрын

All taxes go up , good grief , especially property and local , where on earth do you live.?

@JC-21470

3 жыл бұрын

I will take issue with one thing you stated that rent is guaranteed to go up. Not true, sure if you stay in one place rent will most likely go up but there are market forces that can also reduce rents or you may find a deal or one location can be far cheaper than another etc. So I have to disagree with the statement "Guaranteed to go up"

@johnkeith1964

2 жыл бұрын

We sold our big house and acreage because it was just too much work. We made the calculation that we rather not spend most of our weekend time doing landscaping and home maintenance. Then you throw in the unrecoverable cost of home ownership, property taxes that go up three percent a year, mortgage interest, and insurance, plus about $1000 a month in maintenance costs. Despite selling our home for double what we paid after five years it was a break even event. Like you we want to be burden free and be able to walk away and travel as long as we want without worrying about the house. We just call the property manager. We love it.

@LisaSoulLevelHealing

Жыл бұрын

You could also travel and airbnb your home, getting rid of non essentials (Swedish death cleaning) as well.

Bologna. Owning a home and just paying property taxes will leave extra money for “roofs leaking”. 1-1.5k in rent may just be all of SS and retirement funds. Renting also isn’t just “fixed”. It often gets raised.

I disagree with the idea that renting is better. My home is paid for and my budgeted monthly housing expenses, which include lawn care, taxes/insurance/HOA, and set aside for maintenance and repair, are far lower than rent I'd pay for less square footage.

Who is paying rent now....that doesn't wish they would have bought 5 years ago instead. Always better to own if you are financially ready.

now in 2024 the way rents have gone up, I wonder if she still feels the same way...

News flash when you rent home needs repairs gues who pays for it when you're rent goes up HELLO???

Your argument doesn't hold water ..a leaky roof or a bad air conditioner should be budgeted maintenance items. It's like saying I'd rather make car payments instead of fixing my car😢

Owning your home by retirement is the traditional way to go. However, I think not owning your home is certainly worth exploring. The guest made some compelling reasons but here are a few more to consider. The housing market is on fire and maybe you sell at the top, take the money and buy later. Having a house LOCKS you in to where you are living. If like many retires you would like to travel or live somewhere else, say outside the USA or near your kids etc. Renting gives you flexibility to rent for a while until you figure out what you may want to do long term. If you want to travel outside the US, you can simply plan your trip to leave at the end of the lease and live abroad for a while. Probably the biggest one most people do not consider is the potential huge amount of cash outside you 401K / IRA / Pension you now have to live on that has already been taxed, you can take 250K(single) / 500K (Married) profit from your home and pay no tax. If you invest properly with dividend stocks and income funds along with 1-3 years of cash you can have a safe chunk of income to live on prior to ever touching retirement income. This is how many people retire prior to 59/1/2. Finally, selling your house forces you to sell your stuff you have had and probably don't need. You will most likely realize you do not need all that stuff you have collected in your house over the years and can probably downside your toys / stuff as well as your home. Just some additional thoughts to consider, not for everyone, but it certainly makes sense for some people.

Why not get a reverse mortgage at age 85,then live for another 50 years?

These ladies are wrong. Owning a home OUTRIGHT is the goal. Meaning, you paid it off. That's way more important than and 401k plan. Lady was so wrong on this

I don’t agree with her, owning home is better just pay off home or just have a small balance just enough for tax purpose,that’s my plan ,but I don’t understand people renting all their working years,than retire buy a house,you will be in your 60s u have what have ,don’t take money out to put 20% down or buy house cash , enjoy enjoy your money & retirement

So...for the majority of people, they should get rid of their home, have minimal assets, and try to qualify for government housing?

Who can afford to rent anywere anymore, fir most, your certainly not going to be able to live on retirement and rent. Yea! those days are long gone, and low income retirement places are all pretty much taken up. There's going to be very soon an Epidemic of elderly homeless, were already heading in that direction if one hasn't opened there eyes and seen those facts lately, the I formation os out there. The other big issue is "retirement income" on average might buy food and put gas in the car cloths on your back but it won't pay the rent as well. Pensions are pretty much the thing of the past and retirement SSI just is not eneough. In today's world who has a big bank account to live on, lol. Ok yea! sell the house , ha ha now see how far that money gets you..the wolves are wateing...REALITY CHECK.

Hy

She doesn't know what she is talking about

Worst advice I’ve ever heard. Unbelievable

Dave Ramsey would NOT be proud

This lady is dead wrong when u own a home and its paid off you save repairs come up guess what you have thousands saved, when you rent u pay till u die.... owning and ha ing house paid off when u retire is a win win situation, youte wrong lady

@randomvideos3674

2 жыл бұрын

Yes and leave youre loved ones a golden goose when u pass

@MT-yx5cu

Жыл бұрын

@@randomvideos3674 they can get their own golden goose

Dude, Build a decision tree containing some assumptions and build a pro forma budget from now until your life expectancy.... Pre-1: DO you own a home ? If so, do you want to stay there? If so, Why? (some reasons are good, some are necessary, some are bad) If so, run a spreadsheet (or a piece of paper) costing out the cost of staying; If paid for, check on annual cost of taxes and insurance; look back 5 years on old IRS taxes which give credit for property taxes, and your insurance omcpany for a record of insurance payments if you don't have an existing record. Use this data to forecast expected costs --If you own a house, do you want to sell? If so, Why? (some reasons are good, some necessary, some bad); If so, cost out with a realtor expected costs for selling, from A - Z. 1. Where do you want to live? Here | Somewhere else 2. What' are your current healthcare needs? 3. Is there family in multiple places you like to visit? 4. etc. etc.--After doing this initial screen, THEN one can make a better bet on which way to go. After all, this decision is a pretty big bet, and it is most certainly one where risks need to be understood and estimated. A 2.5 minute off-the-cuff discussion looks really odd here. If the point of this video was to simply state that sometimes owning a home may not be the right bet for a person or couple, it should have been about 5-minutes longer with offering the advice to get a fee-for-service financial or life planner who has no product to sell nor with a financial interest. I normally don't react to videos that don't measure up. For the Motley Fool, I don't know that I've seen one this weak. I'm 67 and watched both sets of parents attempt to make these choices; one did better than the other, but the ones who did better did so in part because they died in their early 80's while the other, wealthier pair are still alive in their 90s. I can assure you, my experience isn't coloring my reaction to this video. I stopped it with 30 seconds to go, none the wiser for my time spent. An aside: billyrayband mentioned some other important considerations about the issue. Producer, it felt mailed-in.

When I am in my 60's and "retired" if I am still paying off my home and worried about the mortgage interest rate deduction as mentioned. I have clearly failed at life. If I can't take care of the property I will either rent it out or sell it and move into a condo or townhouse. People who honestly think renting in the long term is the way to are morons.

@latsnojokelee6434

2 жыл бұрын

I am quite conflicted on this. I had a townhome for 10 years and I was getting tired of carrying the laundry down to The basement and then back up to the second floor every week. And I was dreading the thought of having to upgrade the bathrooms on the second floor. Plus all the other repairs I have had to do over the years. And I thought about selling and when I did the math and I really truly calculated all the money I paid an interest so far on the property, all the repairs, all the landscaping, the upgrades in the kitchen etc. and looked at future upcoming expenses, you could really see how owning the home wasn’t exactly as profitable as I thought it would be. There wasn’t a huge difference between calculating putting a lot of that money into the stock market versus value of the home going up when she minus all the expenses over the years. I’m renting now and I keep looking at Homes, but now homes are so overpriced, and so in need of being fixed up, I’m not sure if I’ll actually purchase a house again. It seems very weird to say that but I’m wondering if that’s my future. Of course I don’t like renting because they keep jacking up the rents, But there’s something to be said for not having to deal with contractors and all the repairs either.

@MT-yx5cu

Жыл бұрын

@@latsnojokelee6434 I'm thinking the same way. I don't really dont want the complications of going through the process of buying a home or upkeep. Im torn.