After Retirement: Should You Rent Or Buy A Home?
The concept of housing for the elderly is increasing with the increase in incomes and longer life expectancy. The rise of nuclear families and youngsters going abroad for jobs have created demand for retirement homes in India. Many builders are catering to the needs of the senior citizens. But, it is very important to think whether to buy or rent a home especially when you are in your golden age. MakaaniQ gives factors that help you in making this decision:
Do you want to leave an inheritance behind?
The foremost important thing is to know whether you want to leave an inheritance behind. If the answer is no, then buying a home doesn't make much sense. In such a scenario, renting would be a great option. But, if you really want to build equity then buying would be a good deal.
Do you want to enjoy flexibility?
Renting would give you flexibility to experience a new location or lifestyle without making a lifetime commitment. This is great if you want to experiment with your environment. If you are someone who would love to travel after retirement, then renting is a great option. However, if you want to live in one particular city, then owning an apartment is a good option.
Are you ready to bear maintenance costs?
On buying you have to bear the cost required while maintaining the home. On renting this responsibility will fall on your landlord's shoulders. But, renting comes out to be expensive.
Would you want a source of income post-retirement
Buying an apartment is a great option if you want to create a source of income post-retirement. You can take two floors and give one on rent. This will give you a good financial support during your retirement. While buying property to earn rentals keep the following tips in mind:
- Evaluate the money you need.
- Buy apartment in cities where you can expect price appreciation and a reliable monthly income.
- Make sure you hire your agent carefully.
If you want to avail tax benefits on a reverse mortgage loan, then you can buy a home. In this, you can go to bank and mortgage your self-owned or self-occupied home in return for which the bank will pay you a regular income. This income is non-taxable. Thus, it comes out to be a lucrative option for the senior citizens.
Also Read: What Is The Ideal EMI To Rent Ratio?