You are empty nesters and you are thinking: Our five-bedroom family home sure seems a bit, well, large, not to mention a money drain. It's time to move to a smaller place. But now you need to decide whether to buy or rent. The idea of renting a house or apartment can be challenging for many longtime homeowners. Owning real estate "is hardwired" into the Canadian psyche, says Larry. But, he says, "ownership is more expensive than people imagine." And it may be more important for many retirees to secure income from investments than to sink money into a new house. Deciding whether to buy or rent when downsizing depends on many factors. You should estimate your cash-flow needs, and assess the relative costs of home prices and yearly rents for comparable properties in a community. You also need to make certain assumptions, such as for investment growth, annual rent hikes, and the costs of home maintenance, property taxes, and homeowners and renters insurance. Your decision will depend a lot on nonfinancial, emotional issues, as well. Do you love the idea of owning your own place and fixing it up the way you want? Or will it be a big relief after years of ownership not to worry about the lawn or a broken sump pump?
So, once again, buying or renting depends on what your objectives are. I would love to see that followed up or ended with::: The best advice (or the #1 thing to remember is to be informed) that can be passed on to you is to be informed, everyone's situation is different and there is no 1 size fits all solution, you will need to ask the question, what is best for ME? The best way to get all the information is to consult a professional like Larry (a financial planner, and YOUR family)