Retirees, Should You Rent or Own Your Home? | 5 x 5 Rule

[@HectorSnipes]

Many people are struggling to save for retirement because of low wages, rising prices, and high rents. Homeownership is becoming out of reach for the middle class, so retirement is no longer just a time to relax-it often means figuring out how to make ends meet, possibly by investing in stocks. When is the best time to invest, and how risky is it?

[@grego6278]

It seems like there's potential , but caution is warranted. hence I will advice you get yourself a financial advisor that can provide you with entry and exit points

[@BateserJoanne]

Having an investment advisor is the best way to go about the stock market right now. I used to depend on KZbin videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

[@crystalcassandra5597]

Could you recommend your advisor? I'll be happy to use some help.

[@BateserJoanne]

Her name is 'Rebecca Nassar Dunne” Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@lolitashaniel2342]

I just curiously searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@SeanTalkoff]

Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.

[@tmer831]

Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.

[@DavidCovington-st2id]

The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.

[@SteveDutton-v]

Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?

[@DavidCovington-st2id]

'Sharon Ann Meny' is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment

[@SteveDutton-v]

Thanks, i did a quick web search and i found Sharon, i hope she responds to my mail.

[@Kin-28-8]

I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.

[@Lewistonwilliams-f5i]

The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.

[@Grace.h-t8o]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@Theodorebarba]

Mind if I ask you to recommend this particular coach to you using their service?

[@Grace.h-t8o]

Jessica Lee Horst is the licensed advisor I use, Just research the name. You'd find necessary details to work with to set up an appointment.

[@Agatha.wayne0]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@codeblue11]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement of about $150k. I want to know: Do I keep contributing to my portfolio in these unstable markets, or do I look into alternative sectors?

[@yeslahykcim]

The professionals presently control the market since they not only have the essential business strategy but also have access to inside information that the general public is not aware of.

[@Jadechurch-ql3do]

The issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand experience, my portfolio has yielded over 350%, since covid-outbreak to date, summing up nearly $1m.

[@brianwhitehawker1756]

impressive gains! how can I get your advisor please, if you dont mind me asking? I could really use a help as of now

[@Jadechurch-ql3do]

Lucinda Margaret Crist is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@lucaswilliams9992]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[@kevinmarten]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@Jamessmith-12]

consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.

[@JacquelinePerrira]

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

[@Jamessmith-12]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@JacquelinePerrira]

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

[@fromthebirchwood]

I’ve worked hard to save about $800,000 for retirement, and now I’m ready to turn my savings into a paycheck. But how much can I afford to withdraw from savings and spend is what I don’t know. If I spend too much, I risk being left with a shortfall later in retirement. But if I spend too little, I may not enjoy the retirement I envisioned. What’s your advice on this please?

[@arlenehill4ril]

I'd highly recommend using the 4% rule, maybe you'd know just how much to spend after retirement

[@everceen]

stay flexible - If the market performs poorly, you may not be comfortable increasing your spending at all. If the market does well, you may be more inclined to spend more on some ''nice to haves''

[@Charlesman_T]

Personally, I used the 4% rule as a guideline, didn't follow it precisely. But for greater level of confidence around portfolio longevity and ability to meet my goals, I use a well experienced advisor from Pennsylvania. In a nutshell, I'm semi-retired and only work 7.5 hours weekly since getting fully invested in the markets for 5 years now, amassing about $1.3m so far, after subsequent investments.

[@okaydamian]

@@Charlesman_T very encouraging for folks starting out like myself, please who is your advisor if you dont mind me asking?

[@okaydamian]

@@Charlesman_T very much appreciate this.. was able to look up Karen by her full name and at once found her consulting page, she seems impeccable !

[@craigo2142]

For me, a single retired man, who travels a lot and sometimes for months at a time, I sold my home and bought a small (studio) condo in a high-rise with lots of amenities worked out great. A place that I can make mine, isn't too much to clean and maintain, close to lots of cultural venues. When I travel, I lock it, tell the management I will be gone and they "watch" it in case something happens. I've come to love living small and seeing the world.

[@rw7668]

Smart!

[@brucesmith9144]

I like to call that, have a small space, but a larger suitcase 🧳😊

[@ddavidson5]

@@craigo2142 At age 70 we moved to a condo last year for similar reasons though with the 2 of us we did buy a larger unit. In addition we also made this move for the time when there is only one of us. It's hard to visualize but sooner or later one of us will be gone and we didn't want the burden of looking after a property to fall on one person (hopefully elderly by then). Either way the condo is less work than our house, it put some money in the bank, makes it easier to travel, and sets us up for the future. Our condo is only about a mile from where our house was so we are still in the same neighborhood too.

[@HB-yq8gy]

I would never purchase a condo,house, or townhouse with a HOA.

[@craigo2142]

@@ddavidson5 Sounds like a very good solution for y'all. We all want different sizes and things, but, like you, the lack of maintenance and community are well worth the HOA fees that so many complain about. Wishing BOTH of you a long and happy life!

[@GregMerchant]

Just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it’s ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over two hundred grand within months, I'm really just confused at this point.

[@AdamsFerguson]

Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge

[@Clancysoucie]

How do I get involved in this? My honest goal is to create a stable future and I'm excited to take part. Who is the main inspiration behind your accomplishments?

[@AdamsFerguson]

I use Dianne Sarah Olson my FA

[@Bergenn158]

Thank you for this tip. it was easy to find your coach. Did my due diligence on her before mailing her

[@jboughtin7522]

I'm retired, own and maintain my home. I remember the last apartment I had. I could hear the tenants on both side of me. Would never want to go back to renting.

[@profribasmat217]

You didn’t know people can rent single family homes?

[@Jacquie_Kirk_111]

Also heat tenant above, it's brutal!

[@ericg9092]

@@profribasmat217 Sure they can, but not for the cost of maintaining a residence that's paid for. Anyone who's every paid off a home knows it's better to keep it, maintain it well, and continue to save their money.

[@profribasmat217]

@@ericg9092 I own 17 homes, dingbat. I retired 8 years ago, I’m renting in Taiwan right now, going to Italy next then Thailand. I plan to live permanently in either Italy or Taiwan and will rent.

[@Peterl4290]

I'm a 48-year-old doctor feeling burnt out from long hours and stress. I've never invested in a retirement portfolio because I've always believed the economy would collapse eventually. However, I plan to retire soon and I'm curious: If you had $1 million to invest safely in stocks over 4-5 years to grow, how would you start?

[@Mrshuster]

I believe every investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@larrypaul-cw9nk]

Opting for a financial advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with one for a while, and my portfolio has grown by 85% since Q4 2022.

[@sabastinenoah]

Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well.

[@larrypaul-cw9nk]

She goes by “Annette Christine Conte I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.

[@sabastinenoah]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@rabukan5842]

Owned 4 homes. The costs of owning are significant, plus taxes, insurance, and being stuck in one place. Return is not always enough to cover all those costs. Retiring next year and am living with my fiancé in Asia at the moment. We will move to Europe for the next years. Freedom is everything to us. Might buy an apartment and rent it, then we will have something when we stop traveling. But for now, being debt free and not being tied to anything is amazingly stress free. That’s freedom.

[@HolySchmidt]

Very nice

[@elizabethpeterson56]

🎉😊 best luck.

[@rabukan5842]

@@elizabethpeterson56 Thank you :)

[@ddavidson5]

You can rent or own but after 9+ years of retirement one thing I've learned is that financial success when you are working is about building assets, financial success when you are retired is about cashflow.

[@gauravipal5691]

Insightful comment.

[@pl7868]

Exactly , have a family house , kids would be mad if you sold an a bunch of other stuff your to old to use an to lazy to sell just sitting there , so assets mean um not much day to day , they are sitting waiting for you to die , your cashflow and needs/wants dictate daily life really

[@anttoronto3202]

Exactly!

[@Unit_104]

@@pl7868 English, please.

[@pl7868]

@@Unit_104 Don't speak english speak Canadian , you do know the earth is round with many country's that speak different dialect's and languages right ?

[@floraandfaunab8855]

Staying put in my home, close to 3 community centers , hospital, library, my neighbors, church etc. I just make it part of my budget and way of living. Now my priority is maintaining my health, joining travel/retiree groups, and gardening. Some of my neighbors are original homeowners since the 70's.

[@StressLessFinancial]

Staying rooted in a familiar community with so many nearby amenities sounds like a wonderful way to enjoy retirement! How has being part of a long-standing neighborhood influenced your approach to staying active and connected in this new phase of life?

[@simpleshoes]

There is so much comfort to be derived from stability. In this mobile world today it’s hard to come by. You have the true American dream!

[@vancester1st]

With soaring property taxes and homeowners insurance in many parts of the country, home ownership costs are not as predictable as they used to be.

[@pjacksreads536]

So true but renting is even more unreasonable and unpredictable

[@debbieframpton3857]

I live in Central Illinois been in my house 21 years and mortgage free the last 7. I would always pick owning a home over renting my real estate taxes and house insurance are very affordable much less than rent.

[@philipem1000]

@@pjacksreads536 Yes it's an important point -- if those rise your landlord will be passing them on to you. I would avoid Florida right now. I live in Arizona, it's not as cheap as it was but it's still pretty affordable. They overbuilt in the past couple of years and I see prices stalling and even coming down in the near future.

[@philipem1000]

@@debbieframpton3857 YES. Stability in your housing is vital to a happy retirement. And if insurance or taxes go up a lot, well they're going to be going up for renters too because landlords MUST pass the costs on. Even if I wanted to live overseas for a while I'd just rent out my home while I did it. My house costs me around $700 a month for tax insurance HOA and utilities plus a reserve for maintenance. Can't find an efficiency apartment for that.

[@susananders3834]

Excellent video, thank you! As someone who has done the opposite of most people, I rented Apts for 40+ years and then (to everyone's surprise), I bought my first home ever as a senior adult. I was very happy as a renter, until I was not. I am very happy now to be a homeowner, which I was never ready to do previously. Renting versus owning is a personal choice, and I would l like to express that friends and family are not being helpful with their strong opinions. Having said that, I would like to share my opinion as a former renter, if you move around a lot (as I did), or are moving to a new town for whatever reason (as I did), I personally recommend renting until you get the lay of the land or are sure it is the right place for you. Thank you!

[@HolySchmidt]

Thanks for the comment

[@christinamarie3598]

After dealing with all parents and grandparents estates .. downsize as best as possible. The best between renting and keeping .. is selling and downsize to a size of home that makes sense all the way around .. less square footage floor wise is less roof to repair or replace .. same as air handlers.. taxes and insurance. One set of parents did this and everything was so so much better … then they used their time traveling.. smaller home .. less expense.. less upkeep = more time. None of the kids or grandkids looked for anything to be left to them .. motto was and is … they made it .. they spend it as they wish

[@frankhammer7408]

Owned the same home for 50yrs the house was going on a 100yrs old a total money pit, sold it and now renting much cheaper.

[@HolySchmidt]

Well done Frank

[@faithrada]

You are fortunate.. rents in our area are currently outrageous .. when they are even available. I own my own house.. keep up with maintenance.. with no worry of an HOA. Even if one is renting.. one is still paying the landlord for taxes and maintenance. .. and perhaps it is not even properly cared for.

[@byhislove]

I'm finding the opposite, I think that it depends on the region, in Oregon the rents are very high, even for a 1 bedroom. The HOAs for condos average about 400 extra a month. I feel like it is very difficult for me to make this decision. When I rented previously, the owners would raise the rent 100 a month after each year lease and when one is on a fixed income, 100 extra a month can be hard to come by. I am actually looking into buying a home abroad, w/good medical care. anyways

[@desertfish6239]

Our home is paid off but we thought about downsizing. Instead, we made some minor changes to the house so as we age it works better for us. We also rent out one of the vacant bedrooms with a private bathroom. The kids moved out years ago. Our tenant is a wonderful person. A friend recommended them and it has worked out great. We gave him a break on the rent and he watches our dog when we travel. Funny, we never thought about renting a room until we were asked if we would.

[@EllenDuke-y3d]

I am retied, and rent out a guest room with private bath to long term guest i.e. graduate students. Works well for me.

[@kerrynewman1221]

Enjoying my retirement life as a homeowner. I've always been a homeowner and I just love fixing things. The garage is my shop. Mortgage taxes and insurance added together is way less than what I would pay for rent. My only dept and just a few more years to go. Thanks Geoff I love your channel.

[@deborahmontano6848]

@@kerrynewman1221 same

[@deborahcaldwell9775]

Well - on my own and 85 (he’s in a dreadful nursing home so I go everyday) so it’s getting harder and harder. I can still do it, but … huff puff.

[@enjoystraveling]

Sounds like you where you want best to be.

[@user-ys1jr3et9i]

Same here same here love my castle that I rebuilt bible nothing better for them than to eat drink and see good for all thier hard work

[@user-ys1jr3et9i]

My home was a dilapidated shack now its my castle!!!! Love it times 10

[@ontheotherhand7627]

There’s another factor that I didn’t see mentioned here. If one has the responsibility of pets, you have to take their needs into consideration as they go through their life cycles. Landlords are not excited to hear that people have pets, especially multiple pets. And having the stability of the same home as they age needs to be considered. Having a relationship with a community for support in things like veterinary care, pet sitting, and other resources is really important. As one who bought a house in 2008 and watched values plummet, I can also offer the perspective that my house would sell now for a third again as much as I bought it for. It’s a very nice house that meets my needs, and my total monthly cost is about half of what I would pay in rent for nondescript apartment. If you buy to hold, then you ride out the fluctuations. A few years ago, I weighed the possibility of paying it off early, and decided instead to invest in upgrades and maintenance. It will continue to increase in value, and the mortgage is an easy payment at this point. And I get to enjoy the improvements. Everyone’s situation is unique, and it’s helpful to consider all of the possibilities.

[@SusanVornov]

Buying to hold and riding out the fluctuations is the operative word here. Who would have predicted the pandemic and the subsequent steep rise in rents? We bought our downsize house exactly a year before the pandemic. We would not be able to afford our neighborhood now. Another factor is asynchronous retirements. I've only just retired this year, seven years after my husband's retirement. We are sitting pretty with a low interest mortgage but it would be a great hardship to move, rent or buy. Good thing we are in a nice city with lots of interesting things to do.

[@billfunk3168]

I like owning a home paid off in retirement. No rent increases just taxes, insurance and upkeep. It takes a lot less money to live off of. Enjoy your channel !

[@deborahj7523]

About 9 years ago, decided to retire a bit early and moved 400 miles to a city near one of my adult sons, who are scattered about the globe. He very much encouraged me to do so, we had been quite close. I picked up everything and bought a small home about 20 miles from him. As soon as I did, he seemed to seek my company less and less. For seven years, even a brief weekly phone call or once a month get-together was a burden to him. I just felt "there." I then picked up and moved to a scenic mountain town, about 100 miles away, 2 years ago. Nice here, but would have been more economical to rent, anywhere.... Investment in home (no mortgage) not going up as much as invested retirement funds, and of course, taxes, maintenance, etc. And...,I effectively moved away from my son, but I felt I needed to. I know two other people who have been through similar situations with their adult kids.

[@yestohappiness2721]

That's our dilemma too - where to move, should we even consider following the kids? But kids are still in colleges, graduating in 2 yrs... hearing stories like this makes me think to not necessarily include being very close to one of them as a main factor...I'm sorry this happened to you, and I know it can happen to me too...

[@rjm7166]

Do you have any grand children?

[@ontheotherhand7627]

Someone who had lived through it said to me, “don’t follow your children.“ Overtime I’ve come to see the wisdom of that advice. Worst case I’ve heard about with some people looking for a home. They sold the home they lived in for decades, and moved across the country to be near their son and his wife and their children. The next year, son quit his job and moved back to take a job offer in the city that they had all left. The retirees were scrambling to find a new home. I picture them gritting their teeth every time they drove past their old house.

[@jpaul4788]

I’ve heard that , is not good idea to follow your children , grandkids, retired , make their planning for their love ones. Instead pursuing their retirement,

[@deborahj7523]

@@rjm7166 Yes, two grandkids live in Australia, 13 and 14. I used to visit yearly when they were little, but they seem so busy now, and it is very costly for me to visit since retired. I also have a granddaughter age 3 in Boston and another on the way there. However, that daughter-in-law, like my other two, is very nice but is very (very) close with her own family, so little time, thought or effort is left for me. They raised the idea of my moving to Boston two years ago, but it would be very expensive for me to live there, and I came to the conclusion that, much as I adore my Boston granddaughter, my son and daughter-in-law there were looking for a babysitter in me. Up until this year, I had been flying up there 4-5 times a year to babysit for a week or so at a time per their request due to their irregular work schedules. They don't ask as much lately. I now live 100 miles from middle son, who I originally moved to be near, in the NC mountains. He's married but has no kids and probably won't....I didn't expect that either....BTW, I am single and raised my three sons pretty much as a single mom, they are all good, working, educated family men.

[@philipallard8026]

Community is critical. Are you willing to put the energy needed to find and make new friends? Without friends many people are lost.

[@Tryp-j9d]

That has NOTHING to DO with rent vs own, CLUELESS!!!

[@RichardQuaid]

Retired maintenance professional. If I wasn't energetic and able bodied I would think about selling but having the freedom to do what I want is priceless for me. Just installed a solar mini split myself to lower my electric bill. We'll see what the future brings.

[@firehorsewoman414]

@@RichardQuaid you could probably make some serious cash on the side just helping out as a fix-it guy. So hard to find good ones these days

[@RichardQuaid]

@@firehorsewoman414 I bought the RV. A trailer. Fiberglass body, aluminum frame, lightweight and low maintenance. Seriously thinking of getting training specifically for RV repair and picking up jobs doing that. I'm an amateur picker and have yard sales all the time. I don't do bad scrapping either. I've done side work all my life. Sometimes for just a thank you. Those can be some of the most satisfying jobs.

[@firehorsewoman414]

@@RichardQuaid omg one of my favorite ways to spend a Saturday morning is going to the metal junk yard with my husband. I once saw a large fountain made from these large (5’ dia.) metal pots / bowls that were originally used for boiling down sap for around $30k. Found similar iron pots at the junkyard and made my own for less than $2k (the millstone for the top part was more expensive than the pots).

[@MannyWC]

@@RichardQuaidI second you getting training for ‘mobile’ RV repair! So many crooks out there! I know first hand😮

[@christaylor8337]

I'm fifty and hope to work until eighty as a handyman. Solid income in retirement to make up for less total net worth. I will still have a couple homes paid off and ss, but roughly a few hundred k in a fund for passive income

[@jabow1878]

We have given ourselves a time line. Six more years of home ownership. We, at 82 and 75, will sell and rent near one of our kids. Single family homes are a pain to keep up. I figure we rented our first 16 years and will rent the last 16 years. I wish more condos had two car garages :)

[@HolySchmidt]

That’s quite insightful. Thanks Jabow.

[@glennet9613]

A lot depends on whether you want to leave an inheritance or not, we rent partly because we want to enjoy the equity from our house whilst we are alive. We also value our health above all else so we moved to the mountains where we can cycle, hike and ski every day, breathe clean air and buy our food from the farm shops. We also live in an apartment so we can go on holiday without worrying about burglars, vandals or anything else. I find that as I get older it is more difficult to deal with stress and repairs and renovating with their inevitable problems, set backs and cost overruns would stress me out. As you get older you need to simplify things.

[@Camera1931-p5v]

I like privacy and security! So I live in my own home in rural New England! Those are my wants and needs! I feel safe and secure! That is a must for me!

[@TheOriginalMarimoChan]

Plan well before you get older. I work in a hospital, and every time someone falls down and breaks something, the first question we ask is, "do you have a 1-story or 2-story home?" and "any steps to the front door?". Not having stairs can make or break whether you have to go home or a nursing home for therapy. We purchased our 1-story home in our 30's because of this fact and we knew at the time we'd be retiring in our home. Now where we live (Hawaii), 1-story homes are becoming scarce as the land developers like to stack the homes for more square footage vs having a longer and larger 1-story home foot print as our lot size is larger.

[@merrywalsh2809]

I am retired, own, free and clear, in an HOA that takes care of all exterior maintenance and landscaping. I do have a two story single family home, because routine stair climbing is good for you, but if I have to live only on first floor, I can. I built my wealth by stepping up in primary residences over the years here in Hawaii, never paying interest except on mortgages, saving and investing 15-20% of my salary starting right away, in index funds. My home is in trust to my kids. That is it. A simple long game by a (mostly) single RN. It is much harder for young folks today, with the cost of housing. The country needs to sort it out with new, cheaper building methods. Stick built on site is not cutting it.

[@turdferguson3475]

We bought our retirement home a couple of years ago. We could have paid cash for it, but that would have meant most of our assets would be locked up in the house, leaving a substantial inheritance to our children, but limiting our ability to enjoy our retirement. So we took out a 100K mortgage on it and now we have the funds to do the things we want to do as retirees.

[@nonawolf7495]

Just a reminder: If you expect your children to take care of you in your later years - you must move to their town... don't assume they will quit their jobs and uproot families to move to your town. If that is your goal, then don't wait till you are too old to move. Do it while you are still young enough to adjust.

[@teresaforsyth6185]

Absolutely true!

[@mt8149]

Don't expect your children to take care of you. Have an alternative plan and live wherever you want within that. At best, hope your kids will visit once in a while. Just being honest here.

[@nonawolf7495]

@@mt8149 You nailed it. Children are not a retirement plan - I would never expect my son to support me. As adults, we are responsible for our own lives.

[@gbinman]

please don't make them move away.

[@TrutherOne-xv8nr7yj3e]

That is a fallacy. I have never seen it successful for children to take care of parents in older life. When one no longer is able to go to the bathroom without help ... it's off to a nursing home.

[@brucesmith9144]

My mother and father lived in their house from 1977 until 2021. It was paid off when my father retired 20 years prior. They had a HELOC on the property and used those monies to replace furnace, roof, kitchen, deck, and air conditioning system over the years and my father kept busy building an HO-model railroad in the basement during retirement as well as doing all the groundskeeping and most maintenance chores up to the day he was stricken. He never wanted to live in a retirement home, and got his wish. My mother had to sell the property, but even with my father’s meticulous care, it needed considerable work to get it sellable at best price in the market. My mother now resides in a retirement facility which she rents, but she is concerned because those costs are rising YoY.

[@firehorsewoman414]

@@brucesmith9144 depending on the nest egg she has leftover from the sale, have you considered a community like the one I am going to name. They have several in different cities - the one in Las Vegas is Las Ventanas (I think). You basically buy in and are set for life. I came across it when we were looking for a place for my dad and stepmom. It seems like a good deal for those who can afford it - my stepmom said no because she wanted that $$$ available to gamble (don’t get me started). It transitions from retirement community to assisted to LTC all in one complex. Anyway, lots of info - take a look. It might work for your mom.

[@patriciayohn6136]

I do own my home, paid cash and made several upgrades to the builder grade elements. I have been extremely fortunate to be able to be retired and comfortable. In my seventies now and I believe I have made good choices since my Husband passed unexpectedly thirteen years ago. When he passed I had to move because of my health issues and bought and moved three tenths of a mile to a new build townhouse community with HOA fees, I was sixty years old at that time and still working full time which made the most sense for me. It is a good choice as what I use as a den currently but it is actually a first floor bedroom with a full bath, walk in closet and would be my bedroom as I age. Happy with my home as hopefully a place where I can stay with help of a care giver until my time is up. Thank the Lord for the ability to be blessed to be here!

[@HolySchmidt]

Sounds well thought out

[@patriciayohn6136]

Thank you!

[@drecksaukerl]

This video does an excellent job of outlining the pros and cons of each option. To me, the bottom line is that the variables, both financial and emotional/philosophical mean that there is no right or wrong answer for everyone. I couldn't imagine going back to being a renter when I remember how corrosive my relationship with the complex management was the last time I rented an apartment.

[@HolySchmidt]

Thanks for the kind words

[@RiaVersteeg]

I retired at 70, the best thing I ever did was buy a townhouse (at 42 when I started over on my own) and payed it off. My car a 2012 Ford Fiesta paid for! And in great shape .... I don't have debt and even though I don't even have close to the money the experts tell you you need I am just fine! If I had to rent I would be hardly able to live my now comfortable life! And I live in Canada where you don't have to worry about medical cost! 🇨🇦 And I did it mostly at $ 18.00 per hour!

[@HolySchmidt]

Nice!

[@javaskull88]

House is paid for but I am struggling with maintenance and repairs. Too many handyman and contractors have retired or moved on. The ones that remain don’t even return phone calls because they’re too busy with other customers.

[@HolySchmidt]

Maintenance and repairs are my biggest concerns

[@toddsmith4280]

For all the people complaining that people no longer want to work, they should be looking at these immigrants. They want to work. That’s why they came.

[@stephaniek2913]

I hear you on that. I've been trying to remodel a bathroom since early April due to broken and aged pipe. Two different plumbers, two sections of new plumbing $ a new shower pan laid so far. Combined, took 10 hours. They averaged over $600 & $400 per hour each on their (bid) labor. I don't even have shower walls yet & it's unusable. $$$ Rip off.

[@philipem1000]

Consider downsizing or moving to a newer place with lower maintenance, even an HOA where some or most maintenance is done for you.

[@johntucker2826]

The politicians of this world are all busy trying to rob their citizens of their savings and assets. However one of the most difficult assets to rob from the citizens is their homes and lands. I retired 15 years ago with a single small home for myself. Then, I bought another house within the commercial zone of my town to set up a small store for my hobby. But as I understood the economies of everything going on, I realized that I would continue to lose money on my own crafting, but I could fix up the new house with my own labor and then rent it out. So fast forward to today, I have four residential properties and over a m illion dollars in unrealized capital gains, while living on a country estate that I own free and clear in a foreign country. To each his own. Tenants can be a pain in the tail, but the lifestyle works pretty well for me.

[@rogermccaslin5963]

I've never understood the idea that renting takes the burden of all those repairs off you (in a financial sense). Whether you own the property or rent it, you are paying for the repairs. The only way that is not happening is if you are renting and the landlord is cashflow negative. Renters pay the bills, maybe not upfront, but over time they are footing the bill for the new A/C or the leaking roof. If you own, you pay the bills and enjoy equity growth while doing so. There may be good reasons for someone to choose renting over owning but I don't see the idea of "not paying for repairs" as a valid one.

[@SusanVornov]

Plus, one may end up with round after round of pressuring a landlord for repairs only to end up with delayed, shoddy repair. If you own your home, you can get repairs and replacements done to your schedule and standards.

[@ronica2623]

Where is the money from the tenants coming from to pay for those repairs? Annual rent increases? In my city, we have rent control where you can’t raise rents more than 3.6 per year

[@ryancraig2795]

1. I think a lot of these discussions assume that the rental housing will be something more modest - ie an apartment - and so there also the benefits of economies of scale. 2. You might have to pay for it over time, but planning for the spending is someone else's problem.

[@rogermccaslin5963]

@@ronica2623 "In my city, we have rent control where you can’t raise rents more than 3.6 per year" Right, and that would make the landlord cashflow negative which is the only scenario where the tenant isn't paying for the bills. That also assumes that the landlord is actually cashflow negative. They may very well still be cashflow positive, even with rent controls.

[@rogermccaslin5963]

@@ryancraig2795 Planning for the spending is one of those possible good reasons I posted about previously. Some people don't want the headache or, sad to say, are just barely making ends meet and the idea of having to fork over hundreds or thousands or maybe many thousands of dollars isn't even in the realm of possibilities.

[@Qrail]

The ball & chain reminded me of ownership of a house. I always looked to it as a ⚓️ boat anchor. I have rented the same house for 16 years. Thank you for covering this subject. Amenities are a key reason why I am still here.

[@HolySchmidt]

Thanks for the comment

[@yestohappiness2721]

Didn't rent go up too much - and what if landlord doesn;t want to rent anymore... we are scared of not being able to qualify to get approved for rent as we are before SS age and not having W2 jobs...

[@bryanwhitton1784]

@@yestohappiness2721 In our area the rental market is insane. If we were to rent the house we are in it would 2+ * our mortgage.

[@Qrail]

@@yestohappiness2721 and for me in the above post, the rent went up 68% but my salary increased by 269% during that time period. Now that I am retired, I miss the ability to do overtime on request, and my pay took a slight hit, down 26%.

[@EllenDuke-y3d]

You may want to explore your assumptions. I am a landlord and credit score is as important as income. I am now retired and expenses are less than budgeted.

[@eddieBoxer]

At 63 years old, single / divorced I don't need a 3 bedroom house when I only occupy 1 room, waste of money, I just rent an apartment and happy.

[@illawarriorhill70]

Many people use a "spare" bedroom as an "office" or sewing/craft room, and a guest room is handy when friends/family come to visit, especially if grandchildren sleep over.

[@mt8149]

My house is paid off so I'll keep it and I'll always have a home to come back to and it makes a great summer home for 4-5 mos. of the year. The rest of the year I will travel and rent for a month or so and move to the next location. It works for me and saves me money for those 4-5 months I'm back home. When I'm too old to travel I will either stay home or sell it and buy/rent wherever is my favorite place to be.

[@HolySchmidt]

Thanks for the comment

[@meatman6660]

1) As a retired industrial facilities maintenance manager, I have read multiple articles about home maintenance expenses as we approached retirement. 2%. Flooring, roof, stove washing machine, HVAC, etc. $400k house is $8K a year. Some years $0, some years $16,000 budget accordingly. 2) ADA compliant housing, we have always bought ranch houses. Moved from the country to the city to get better services and more things to do in old age. 3) Owning a house is forced savings. At end game you will have this asset. 1of 6 Americans will need some long-term health care. 1-5 years' worth. So, if you are renting for all the positive reason (which I don't disagree with) a couple needs a $3-400k cushion. Long term health care insurance is unaffordable. In you can afford it, you don't need it. If both people need LTHC, bankrupt and Medicaid pays. Between my wife's grandparents and mine and our parents, 12 people her mother is the 1st needing LTHC. Hospice is saying the end is very close, days. October will be 5 years. Budget accordingly.

[@KW-qd9vq]

Wow! Thank you for this post. Very helpful!

[@firehorsewoman414]

@@meatman6660 sorry about your MIL but sounds like she has lived a fairly long life. Kicking myself that I didn’t take a benefit of LTHC insurance when it was offered dirt cheap through work. Was younger then and money needed to go elsewhere, but it was a good plan and prices locked in when you signed up and it was portable. Hindsight is 20/20.

[@nogames8982]

The decision for me is easy. I own my home and it is paid off. I cannot afford to rent in this town. So I’m hoping to stay right here. I don’t have to downsize because my house is only 690 ft.². I have updated everything including the roof.

[@PeteCalandra]

There are many people in Florida who are retirees that rented that had their rents raised an insane amount. They then had to move out of state. This is after living in a place for years.

[@Gzluweez]

Rent where? rents going up as fast as house prices, taxes and insurance. Maintenance or lack of is issue. Hobbies to keep you sane, pets, private parking go with a house. Finally, I’m coming to grips with letting the house age. Control water, and small repairs. Let the rest go. If you live in a house long enough every system gets replaced. The folks who do the bare minimum still enjoy appreciation with the costs. True.

[@rw7668]

I like this channel a lot and have been pondering this issue quite a bit. I see things a bit differently but perhaps that’s because I have no intention of having an estate to pass on. I am thinking of selling, possibly buying something small so I can avoid capital gains taxes on the first $250k from the sale, then putting the rest in a diversified portfolio. There will come a time when if I’m around, I’ll need to go to a retirement home which will require a pretty big escrow. The numbers are wild! As I’ll have already sold and have liquid assets, I won’t be required to sell in a hurry (if I’m even able to do it myself or find someone trustworthy). One thing I have learned from caring for my mother is you cannot depend on others to care for you when you no longer can. It’s sad but true. I can’t count the number of times I’ve been told that I was a good son and that not everyone would have cared for their own parents when they needed help!

[@firehorsewoman414]

@@rw7668 check out the type of communities like the one I mentioned to another poster - Las Ventanas in Vegas - its run by a non-profit ( I think). There are some in different cities. Not directing anyone to this particular facility, but the type of facility so you can do your own research. Never knew these existed until I had to start searching for my dad and stepmom. Its an interesting concept

[@deborahmontano6848]

Home is paid for at age 60. Now 68 not going anywhere

[@HolySchmidt]

Sounds like a plan

[@drecksaukerl]

Home is paid for at age 61. Now 63 not going anywhere

[@KAZHE63]

Are your property taxes and homeowners insurance going up??

[@suewolf3279]

My house has gone up 435% from when I bought it. And it's totally updated in the past 6 years my taxes are a good rate period my homeowner insurance is a good rate adding those two together will not come anywhere near what rentals are going for in my area

[@deborahmontano6848]

@@suewolf3279 same

[@louisapdjones]

Owning your home at the beginning of retirement makes sense from the standpoint of keeping options open. Renting late in life may make more sense when you can't maintain a home. Owning in the earlier years of retirement is also a financial asset, a vehicle to store wealth. You can sell it if your circumstances change.

[@HolySchmidt]

Love it

[@Chris_at_Home]

We sold our 3 bedroom raised ranch 10 years before retiring and built a small duplex with one bedroom units out of pocket. We spend much of our summer at our remote cabin and vacation in warmer climates in the winter so it is nice to have tenants on the property.

[@HolySchmidt]

Sounds very nice

[@kwaichangcaine8234]

I'm 64 next month and I own my little house but the property taxes are insane here in Cook County Illinois 😮

[@HolySchmidt]

I hear you. Chicago is expensive all around

[@Holyheart1]

Ill sucks for taxes I want to get out

[@whatsup3270]

It is common, in Texas 1.5% - 2.5% every year, with prices skyrocketing $1,000-$2,000 /month. 25 years ago I was paying $250-$350/month on 1/2 this salary and 30% of the home value. And that is before insurance which is also ridiculous because of hail damage is common here.

[@rickb2537]

@@Holyheart1 But, Illinois doesn't tax pensions or IRA income. Every state gets its income somewhere.

[@Holyheart1]

@@rickb2537 yes your right but I believe my taxes are going to keep Going upupup

[@travelingfool9096]

on a 2/3/4 year timeline, on the fence about selling, leaning to selling at this point

[@larsonbwl]

You may be able to rent out your house if you want to travel. Maybe you can covert part of it into a separate unit to make income and still keep your belongings to have a place to return to.

[@paulkoza8652]

I retired a few years ago and moved from Florida to Virginia. Bought a new house - first ever new one I bought. I did two years of research before deciding upon the location and builder. I have no regrets. I know that this is not the final place I will live and have already started evaluating retirement communities that include assisted living and long term care. Do your research and think two steps ahead.

[@byhislove]

good point! I looked at retirement homes, they have really high HOAs and are flexible. That scares me on a fixed income.

[@ddellwo]

As a “car guy” who’s goal in retirement is to spend copious amounts of time out in the garage tinkering on my collector vehicles, owning a home is likely the only way I will be able to roll. To be honest, I HATE all the BS that goes along with home ownership, but I LOVE my garage - a strange dichotomy for sure……..😂

[@HolySchmidt]

Hey - if it works, it’s not strange!

[@firehorsewoman414]

You could consider buying some land somewhere and putting up your dream shop and going smaller / cottage type for the house or do a dream shop with an apartment /small home as part of the structure. A barndominium. Pretty common here in Texas.

[@ddellwo]

@@firehorsewoman414 - That would be my dream! Unfortunately, my wife doesn’t share the dream……..🫤

[@De-Centralized]

I'm 56 and retired, paid off my home 3 years ago. Only home I've ever financed and now own outright. This was the last of our interest-bearing debt. I do the vast majority of my home and yard maintenance and upgrades myself. Only paying insurance, property tax and maintenance/upgrades minus my own labor is very nice. Very good for both physical and mental health!

[@HolySchmidt]

Sounds wonderful!

[@gauravipal5691]

Retired 3 years back at age 56. Home was paid off by the age of 46. Moved to India for 3 years to take care of aging parents because Greencard for them was taking forever. Just returned 2 weeks back. Had sold my car, rented my home (which involved selling all my furniture), so I am starting from scratch. I am not as handy as you so I am wondering whether I want to keep the home or rent. This video is super timely for me.

[@philipem1000]

@@gauravipal5691 Just a suggestion, consider downsizing and moving to a newer, lower maintenance property. I live in a townhouse that is well built and I do my maintenance but it takes very little; I save money each month for the inevitable big bills. There is an HOA that takes care of some of it and keeps the landscaping in good shape. I recently started slowing down a bit and so I now hire a handyman and a house cleaner monthly just to make life a bit easier.

[@robranney-blake8731]

My mortgage payment is “PITI”. Principle and interest are fixed. Taxes and insurance keep going up every year.

[@rdbwdc774]

Mr. Schmidt - I absolutely love your videos and the knowledge you share. Please consider creating a video addressing how to choose a financial/retirement planner. Thank you!

[@Liam69400]

Excellent video! Could you please do one on buying a condo over buying a house?

[@lindabuck2777]

Condo is just an apartment and not worth it. All have maintenance fees that can go up astronomically. Then they don’t do fully right by the property things get old have to be replaced so that huge amount even though divided up can be thousands! Unless you research greatly till you’re exhausted to find one available in your price range. Very few are well run and managed. You do what you can but can still have financial issues running out of money. Part of the problem is the old guard are aging out or selling for retirement and younger ones comin behind don’t KNOW how to run as well, so greed and ignorance are a factor to consider. To me the point is to get away from fees and costs that consistently go up, other than food utilities and health costs. With the new rules and laws in place some changes on the positive for condos. Seems too iffy right now. You can STILL be blessed and find a good place it just takes way more time than we think!🙏🏻🧐😉

[@jimb1073]

My wife and I are looking at keeping our home and doing long-term rental for the winter, in retirement instead of buying a winter place.

[@HolySchmidt]

That’s a good way to do it

[@noreenn6976]

Lots of people do that and are quite happy with it.

[@blippacg]

I'm retiring in December at 59 1/2. Plan to live in a 5th wheel for the next couple of years until the kids stabilize in college. Not sure where everybody will end up in 5 years. I like the flexibility of the 5th wheel and relatively low rent/lease.

[@MannyWC]

I did the same but built a van. I own it and maintain it. I love the flexibility for now! I have all that I need at the moment and can visit the kids whenever! The $ is piling up from not having to maintain a house etc! I have my stresses but nothing compared to horrible neighbors/barking dogs etc!😅

[@catwrangla9027]

As a kid who grew up in rentals, I always hated the feeling of insecurity the situation caused me. Not that I had to pay the rent, but knowing the landlord could at any time throw us out was unsettling. I bought a home which currently has a mortgage and I plan to sell when I retire in 3-4 years and relocate somewhere I can pay cash. In fact, my retirement plan depends on it.

[@elizabethpeterson56]

good 4 u. growing up renting even under great circumstances is an eye opener. as soon as reasonably possible i bought a 2 family. charged less rent but had good folks. did major structral repairs to update property. glad i did it. renting now but all all things r negotiated mutually. if we stop thinking of homes as way to wealth and help each other might b nice.

[@Jeff-p5i2w]

You covered one the most important aspects in 2 seconds. If you can a good price for your house or condo like i did. You can invest the money and the interest on your investment can practically pay your rent. My condo sold for 500g with no mortgage. Bought a brand new car Renting in a luxury building with no worries .of course every situation is different .

[@wildhorses6817]

What State or Country ? There are no large rental apartments where I am located. I like the weather where I live. Simply don't know where to move since weather is big factor for me.

[@Jeff-p5i2w]

@wildhorses6817 I live in North jersey Which one of the most expensive rental markets in the country. Nevertheless The money I received from my condo sale, along with what I already had practically pays my rent with my investments. As I said in my original comment, everyone is in different situation

[@ajm3821]

@@wildhorses6817where do you live? I’m planning on moving to NC

[@whenbirdiesfly]

This is the exact question I asked on another channel, but she hasn't answered yet. Thanks, looking forward to the followup video! 😊

[@HolySchmidt]

My pleasure

[@fepeerreview3150]

It's all about having control of my expenses. I own my own home free and clear. I have a very small "guaranteed" pension and the larger part of my retirement income is from investments. The markets can go to hell in a handbasket and I know I will always have enough income to cover the property tax. For me nothing can substitute for the security of knowing I have no mortgage payment to make each month. And that mortgage payment I don't have to make is just more money to use as I see fit. Mostly I'm happy to live modestly and I'm still living comfortably below my income. But once in a while I enjoy a splurge (travel) and my cash flow allows for it. Owning a condo may work for some people. Personally, I'd rather not have the unpredictable HOA fees that can go up suddenly and in large amounts. Again, it's a security issue, control over my expenses. I also don't like living in such close proximity to others.

[@rst90274]

I saw a realtor's KZbin channel that presented a survey of all 50 states. It showed the average costs of real estate taxes, home owners insurance, and maintenance. The annual range was $19,000 to $29,000. I'm sure there are those that pay less but it interesting to look at the costs of continuing to own in retirement. Clearly, some seniors are struggling financially. I live in California so property taxes are low due to proposition 13 but now virtually the entire state is considered a high risk fire zone. A lot of people are losing their property insurance as companies are fleeing the state. Most people do not carry earthquake insurance and some companies will sell insurance without fire insurance coverage.

[@DillyPutty]

That seems pretty high. 2,700 sq ft house: property tax, insurance and 1% of house value for annual maintenance cost comes out to about $6,500/yr. Fairly LCOL area.

[@jjred233]

@@DillyPutty Nah, that's about right, $19,000 for insurances, property taxes, and maintenance. The vast majority of home owners don't even spend that amount. They usually let the house fall apart before doing maintenance. The people living on just social security usually drop the insurance as well.

[@rst90274]

@@DillyPutty agreed, sounded high to me but if you buy a house in my neighborhood now, the property taxes would be $45K annually at the minimum. Fire insurance is getting to be impossible to find. I guess my point is, you never stop having costs associated with housing so you need to budget for it.

[@jennycatlike]

My bias is toward home ownership because I've seen so many people not be able to afford rent increases, However I've also seen where people on fixed incomes can't afford to fix their roof or have other major home repair needs that don't get done. I think the biggest thing is when ever possible to buy or rent way under your maximum budget so you have a lot of cushion for WHEN expenses go up.

[@gauravipal5691]

In most parts of the country, the ROI in stock market (60/40 stocks and bond) is higher than home equity increase. Something you may want to mention. What a coincidence that you mentioned Portugal. I specifically have in mind that I want to spend a couple of years in Portugal, couple of years in Thailand and couple of years in Costa Rica and explore those regions at leisure. Not sure if I will sell my home during that time when I am gone or rent it out. But this particular video really spoke to me. Thank you.

[@EllenDuke-y3d]

Sounds interesting. I like the idea of slow travel. Life is an adventure ✨️.

[@austinbar]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?

[@rogerwheelers4322]

Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

[@joshbarney114]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@FabioOdelega876]

@@joshbarney114 I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@joshbarney114]

Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@FabioOdelega876]

Thank you for this tip , I must say Marisa, appears to be quite knowledgeable. After coming across her webpage, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.

[@2023Red]

Goeff. Super topic and explanations. For us, I am 76 and wife is 70. Our 4 bedroom home is one story, completely flat to include entrance, all tile, and in great shape. My only goal is to leave this life in such a way my wife has no worries at all. Thus, owning is better because no landlord can evict us. The mortgage is covered by our dividend portfolio with excess capacity. Top medical is less than an hour away be UBER. And commerce is all around us to include Starbucks and grocery. My objective is to project into the future 30 years and ask what should be done now to make her life as nice as it can be. So far, I can find no stone left unturned.

[@jodylarson4697]

We sold the home, banked the equity, and are renting in a senior residence. The rent includes meals, cleaning, and transportation if needed, plus social programs from which we can choose. We don't need to leave anything to children, so our plan is to spend what we've got on ourselves and take it easy. We are 84 and 76.

[@bob_frazier]

Owned 7 homes so far, got to the point where I was able to offer seller financing when it was time to move, it's worth considering. Never owned a rental. Home is my ultimate hedge against inflation.

[@HolySchmidt]

Good job

[@donnanorris4733]

I've owned my home 29 years. Love my home, and have no desire to move. The only negative is rising property taxes, which I am sure is included in any rental.

[@robertanderson5334]

Rent,no way! An apartment instead of a home,no way! I dont want to climb any stairs anymore. Put up with a multitude of transient tenants. My cars out in a public lot and not at times being able to be near my door. My cars vulerable to theft and damage. My cars out in the cold winters. Landlords who are slow to fix things. Landlords who at the end of your lease jack up the rents, they know how much its going to cost you to move and settle in at your new place,leaving you vulnreable to their demands if you stay. Hauling your trash down to the dumpster in the lot. A yard for the dog and just open your door to let it out. Those days are gone,you now have to take it for a walk to the nearest place to relieve itself. No place for storage,getting used to a smaller space, I did it for 2 years and went nuts until I got another home.

[@HolySchmidt]

Thanks Robert

[@kathygreenlay73]

You don't have to rent an apartment. There are townhouses, semi-detached or single dwellings to rent. There are garages with most of these options.

[@robertanderson5334]

Kathy, those options are pricey you will find and hard to find depending on where you live. You will find that if there is a garage that will be extra, want live on the first floor that's extra, live in single home,now you are paying for heat,water and sewer,electric. Probably will have to keep up the yard. Shovel in winter.

[@kathygreenlay73]

​@@robertanderson5334Most of the issues you raised were specific to apartments. I simply mentioned other rental options. You didn't include cost as a problem but I have never heard of paying extra for a garage.

[@MikeRakowski]

Proximity to neighbors...we rented apartments for about 5 years...neighbors on top apartment, getting it on every night, all night long, neighbors blaring music, kids running rampant in halls and nearby apartments. Unresponsive management, lack of storage, kids peeing on communal sauna, etc. No thanks.

[@pamelavance648]

If you didn't have a sauna... I'd think you lived at my location lol neighbor below awful and that's being polite 😮😊 and the rent goes up minimum 100.00 each rent increase 😢😢

[@PatchouliPuff]

Hi and thank you for your work here. While I agree with some things said, I have to say I strongly disagree with some of the advantages you state about renting. I'm a New Yorker and never owned a home until I was 39 (now i'm in early 50s and my house is on Long Island). I've lived in about 27 different places (all in NY) since childhood, always rentals, and there was a lot of unstability due to lots of things: rent goes up a lot more than you seem to envision; it's hard to find a place with more than a one-year lease (and of course if you do, they're going to pad the cost); actually a lot of owners REFUSE to do leases; moving is hard if there are lots of stairs and it's expensive; utilities are not all included usually; serious repairs may not be made and you have to live with something dangerous or disgusting until you go through a lot of stress to force the landlord to fix it; a new renter may move into the apartment next to you and behave horribly; basically you lack control over a lot of things and it can really affect your life badly. Landlords always are out for some kind of profit (obviously) so it's a mistake to think you're making out well because your utilities are included,etc.

[@philipgerry5228]

We bought our first house in 1977. Payments for mortgage and taxes were $300/month. Those same houses are renting for $1,400-$2,000/month now. Long term renting is more expensive.

[@stephaniehyatt309]

I have NEVER had utilities included in any rental, and have never even seen it on a rental listing. For 3 years, I rented a place that raised my rent so high, I had to move. I left the state because real estate had skyrocketed (MD/DC area). I bought my current home, a duplex, 7 years ago after renting for 10 years - without a single rent increase. Because I did many simple repairs myself, the landlord gave me $17,500 in credit toward the sale, and sold it to me for $11,000 less than he had paid for it in 2007 - before the real estate bubble burst. I rent the other unit (which was gutted and fully remodeled with premium appointments in 2013), and my share of the mortgage is $93. The reality is, I could rent the unit for significantly more, but I have a conscience, like my tenant, and would like him to stay for as long as possible. BTW, we are rural, so he also pays for the waste/recycling as well as utilities. Water is free, since I have a well. I will say this: it is important to establish great relationships with service/repair people. I get first rate repairs at fair and reasonable rates.

[@glensmith491]

I've had one, albeit about 40 years ago while in college. I've seen it offered multiple times but usually just on a "mother-in-law"-type apartment at best.

[@whatsup3270]

Typically water, trash, and sewer are in the rent bill. Some places had a internet or cable TV included or paid at a group rate. Additionally, lawn care and snow removal.

[@psychedianic]

Your situation sounds ideal. Having a management company raise the rent every year is getting old. Their goal is mortgage level rents for apartments that are tiny and have none of the amenities other places have, like dishwashers or washer/dryer connections. They don't do proper basic maintenance and state laws are in favor of the landlord. Good luck trying to get a lawyer to call back if you're a tenant. Having one's own home as one gets older is better than being at the mercy of a money minded company that expects mortgage level rent from people who aren't able to save to buy a house. The homeless are on the rise around here and there aren't enough bridges in this city to accommodate all the seniors who will wind up getting priced out of their rentals with no family to go to.

[@stephaniehyatt309]

@@whatsup3270 Having rented in CA, SD, MT, MD, and NC - not one included ANY utilities other than water - which is all I provide to my tenant as well. None offered lawn care or snow removal when needed. You must live in large metropolitan areas. I just looked at rentals in my area (Chapel Hill, NC) and the only rentals that include any utilities are those designed specifically for university students. More than 5 miles out - only water.

[@stephaniehyatt309]

@@psychedianic I admit, I am very fortunate. When I first signed the lease, I asked if I could "rent to buy". Unfortunately, a sale was pending, but as you see, the landlord was amazing. I do take care of all maintenance/yard work. Because I live in the woods, the only yard care is leaf management - only parkway mowing. The homelessness issue breaks my heart and has grown exponentially since the pandemic. My elderly sister (77) lives in CA, and has to rent a room from a friend in mobile home park. I understand the need to pay a mortgage, and that most rental property owners want to make a profit, but greed has changed the equation and fueled the homelessness crisis. As a community, we need to do better.

[@jason60chev]

Well.....I'm still living in my home and approaching retirement, but still earning a 6figure income, but I'm NEVER home! Just had the roof replaced and the AC system replaced. Should be the last time I ever have to deal with it. If your house is paid off, you still have to pay for taxes and insurance. Rent or own, you're still going to be paying some one something.

[@djw8888]

My parents decided to retire in their single family home in a not-so-walkable suburb. Now in their mid-90s & becoming increasingly frail, the home is a burden. If/when I buy again, it will be - somewhere where I can easily get assistance, should I need it - in a very walkable area - probably in a city center

[@CageyLeigh]

So, to summarize, rent a home or buy a home based on what is best for you. Wow, why didn’t I think of that.

[@HolySchmidt]

That would apply to just about every decision in your life… the key is know what is best for you!

[@heathernevill2405]

It depends on where you live for renting. A lot of the landlords here are passing on the costs of maintenance to tenants and now requiring $100K of contents in renter's insurance. As a tenant, I have to pay for tree trimming 2+ times a year, landscaping/yard maintenance, all utility bills (water, wastewater, trash, gas, & electricity), pest control, and the copay for the home warranty for any home repairs (AC, plumbing, electric, covered appliances, etc) and some fixtures (example ballast in master closet light wore out, so I had to replace the fixture plus the cost of the home warranty co-pay). We paid to have the fireplace cleaned & inspected and found out it has a crack in it, so it's unsafe to use. Landlord won't have it fixed. Also I pay yearly to have our dryer vents cleaned out. Our lease is up in a few months, so we're looking for a better landlord and a condo or townhome where yard & exterior maintenance are taken care of by the HOA and landlord handles maintenance and we don't have to pay the home warranty copays.

[@MannyWC]

Yowza! Get out!

[@tmoore1144]

I own my home. As long as I can maintain it, keep taxes and insurance paid? I am good. Plus I love my stuff. I would hate to give up all my sewing/ quilting machines. Renting an apartment large enough for my stuff, in my area, is as much a month as my annual taxes for the house. I am staying put.

[@brianc.612]

you nailed it all. great video. thank you. we plan on selling our house, had it for 10 years and we have a lot of equity. We will then move to Italy on a visa for at least 3 years (no tax issues in Italy on a visa). We'll rent and save at least $50k a year and not touch 401k. Apertivo everyday at 5:00, amazing, healthy food and travel!

[@HolySchmidt]

Thanks Brian!

[@enjoystraveling]

Sounds, delicioso¡

[@SamBalducci]

I have rented and I have owned. I am never renting ever again. It is easier to budget for repairs. Even if you rent condo/HOA dues go up all the time.

[@HolySchmidt]

Love it

[@todddunn945]

A big factor in the rent/buy decision is availability. I live in a very popular tourist area in Maine. Due to the heavy tourism here there are essentially zero long term rentals, so if you want to live here you really have no choice. You have to buy. Of course the lack of rentals also means home prices are high. So that is a factor too. Then there is the big consideration. If you already own your home outright, the cost to stay there will be significantly less than renting. My home, for example, has base costs of only about $720 per month. Base costs are taxes, all utilities, insurance, etc. I didn't include repairs, but you can budget for repairs and still be way ahead of rental costs. Plus as long as you pay your taxes, you can't be kicked out.

[@firehorsewoman414]

You could rent out your home during peak tourist season and travel yourselves during this time. The money you might make could pay for a lot of home expenses and possibly your travel expenses since vacation rentals are usually premium prices.

[@todddunn945]

@@firehorsewoman414 My house would gross $50K-$60K, but I would have to hire a management company which would eat a lot of the income. And that doesn't even consider the extra taxes and insurance. Also we like being here in the summer, because I very much like sailing my yacht in this area.

[@firehorsewoman414]

@@todddunn945 haha if you have a yacht, then it sounds like you are doing pretty good. I have been sailing a few times (as a passenger). I get the attraction, it was a lot of fun.

[@todddunn945]

@@firehorsewoman414 Doesn't everyone have at least one yacht? Just kidding. We are doing just fine. As I mentioned above our house (4 bedroom, 3 bath) is pretty cheap to live in. Also we are closing in on 80 so our horizon isn't that long anymore.

[@firehorsewoman414]

@@todddunn945 well if closing in on 80 and still sailing - good on you. You might be around longer than you think. I joke with my family all the time that we have to be dead by 93 and 98 respectively or we will need to come live with them. Haha.

[@steeltalon2317]

Final house payment is this month. I see other home rentals around me. I can almost taste the stress they are going through. I see it in their voice and behavior.

[@bethiciaprasek1008]

Happy to have a mortgage, but need to analyze paying off plus insurance, tax etc. So knew it was good for even old me as I saw people scooting by in handicapped scooters to places less than a mile away. Tough due to 2 story when I broke ankle but purchased knowing den/downstairs bedroom plus half bath. I am back upstairs but do need to install a handicapped shower downstairs for the future. And I need others to notice potential maintenance concerns. Purchased at a great time (2012). Plan to stay in area whether working or retiring, but plan to keep working in a geographic area good for my field and with skills that can be in person or remote. Still working on more skills to stay working into early 70s and consulting after that so location is great. Likely will want to pay off early, but still analyzing other bills. Recently purchased a car. Never before had a car note, but the pros of the car long term made it seem worth it.

[@lindabrown8421]

I own a small farm, but have often thought it would be nice to live near the coast. I looked at coastal rentals and they all said they might consider a small pet. I have three golden retrievers and two cats so renting will never be for me.

[@illawarriorhill70]

Whether buying or renting, the system makes sure it gets as much of your money as it can. Personally, I want the security of living in my OWN home, and the choice to modify as I choose.

[@musclebymike1382]

Six years before my dad/mom retired, we made sure the house had a new roof, updated window, updated AC/Heating, updated water heater, took care of any small issue and both vehicles were paid off. The price of homes went through the roof so we had my dad/mom sell the house because it was too big for them, they made great profit. They found a small fixer upper home, lower taxes and everything worked out for them. I can't imagine renting while retired, so many things that can happen that is beyond your control

[@HolySchmidt]

Thanks Mike

[@babysisdolls3336]

@ age 60 living a nomad life....looking forward to just dropping dead enjoying traveling the world...my stuff only thing that keeps me wanting a home.

[@searchersearcher8286]

If it doesn't fit in your fly away bag, Ditch the Stuff

[@babysisdolls3336]

disconnecting from your stuff is the key to freedom.

[@maggiebenton6384]

Hi Geoff, appreciate your channel so very much. Have you ever done a video on pros and cons of reverse mortgages?

[@Thomas63r2]

This is both a complicated and simple question all at once. No one should make this decision based off a 15 minute video. I believe that surveys and research show that most people stay right where they are in retirement, mostly for financial reasons. If a person is newly retired it would probably be wise to give it a little time before making any big changes - haste makes waste. Rather than waiting until retirement, give yourself the luxury of time and start planning where you will live out your retirement while you are in your later working years. Another option not mentioned: consider building a retirement friendly ADU on your existing property if allowed (especially if your partner is already gone) - and then lease out your big family house to provide an income to make your retired years more enjoyable.

[@terryB4713]

Yep staying in my home won't be paid til 11yr but I can afford mortgage already have my budget figured out!

[@targadave]

I think a big factor is the type of home ( age, size, detached, etc) and location. Some can be huge money sinks, others far more cost effective. We own our primary and two annual rentals. No mortgages or any other debt. Great ROI/ diversification on the rentals but landlording is not hassle free and of course the primary needs upkeep as well. Long time DIYer and retired contractor here so maintenance comes naturally. All that said we’ll likely sell them all some day to move to Australia where both our adult daughters live😂. We ‘d be far more likely to just rent if/when we make that move. Home prices in Australia are currently a bit crazy….

[@timdowney6721]

To say there are no maintenance worries in renting is optimistic. The landlord may have the responsibility to fix things, but getting them to do it can be trying and time consuming. And property taxes will go up whether you own or rent. Pus, the older you get, the harder it is, I think, to move, especially on short notice like 30 or 60 days. Not to speak of finding another place not too far from your friends, etc. At least in my town, public transportation is very limited, so if you don't drive, you will not see your friends often.

[@sterlingmarshel6299]

depends where you live the transportation of the city - if you live in the suburbs that would suck,

[@buffycat4641]

Only had a mortgage once in my life back in 1992, paid it off in 13 years. Had two houses after that and paid cash for both. An important factor is the state you live in, I lived in Florida from 1969 to 2020. I had retired in 2011, and left Florida for good in 2020. I could not have afforded to be retired in Florida either renting or owning a home, the taxes and insurance would have drained me financially. Those same costs are passed in to FL renters. I moved to a state where the taxes and property insurance costs are lower. I am not surrounded by a concrete jungle, and once again have 4 mild seasons. Biggest downside is I am now a distance from a major airport and since I like to travel I hire a car service to get me there and back, I just budget it into my travel expense. To each his own.

[@VivaciousOM]

What state did you move to, if I may ask?

[@dhh488]

I didn't buy my first home until I was 55. I really miss the carefree days of renting, but there are plenty of projects that come with home ownership that keep you busy which can be nice too.

[@ceciliawilson6328]

Y0u obviously have not rented in many, many years. I pay ALL utilities and the water bill, and that is typical. Rent increases are inevitable, but so is insurance, property taxes, and rising HOA costs and assessment s. For me, neither are stable, but at least by renting, I don't have to worry about big ticket repairs, which in an older property is crucial.

[@faithrada]

My friend has had the home she was renting SOLD out from under her twice. Currently all rentals in her area have skyrocketed. Had she kept her original home.. that she owned... she would have been far better off.