• Question
  • Renting when retired?

    Asked by a 64 year old woman from Dublin, OH on 6/12/2012

    Is renting a good idea when you retire...thinking of moving us to a area where we don't need a car.

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  • Categories: Downsizing/Relocation, Housing

Answers

  • Editorial 


    NewRetirement

    San Francisco, CA

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  • Good for you for thinking outside the box and creating a retirement plan that really suits your desired lifestyle.

    There really are so many benefits to a walkable community -- especially for retirement. Studies have shown that a walkable community can:
    - reduce coronary disease and stroke
    - lower blood pressure
    - reduce cholesterol
    - increase bone density
    - alleviate back pain

    A walkable community can also increase your sociability and sense of community which are also proven to be particularly beneficial as we age.

    As far as the financial benefits of renting in retirement. Believe it or not there may be some.
    1) You can eliminate the expense of a car,
    2) You can release equity by selling your home. Many people have not accumulated enough cash for retirement and using home equity to fund retirement is increasingly popular. Selling your home and investing your equity for retirement may be a good idea.

    Of course the financial viability of renting really depend on how expensive rents are.
    -- Some communities have rents that are lower than the mortgage on the houses might be. Other areas are quite expensive relative to mortgages.

    How are your retirement resources? Did you find useful analysis and suggestions for improving your retirement plan in the Retirement Calculator?
    https://www.newretirement.com/retirement-calculator/default.aspx

    You can research the walkability of different cities using this unique web site:
    http://www.walkscore.com/

  • Login to rate this answer:   Answered on 6/12/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.