Should You Own a Home in Retirement? Maybe Not
There are lots of good reasons to own a home, both as a working adult and as a retiree. When you own a home, you don't have to stress about your rent suddenly going up once your lease runs out. Similarly, you don't need to worry that your landlord will decide to reoccupy or sell your home, thus leaving you out on the street till you find a new place to live. But perhaps the most enticing benefit of owning a home is the tax breaks that come along with it. Not only can homeowners write off the interest they pay on their mortgages, but there are a host of additional deductions, from property taxes to mortgage points, that property owners can capitalize on.
But despite these perks, a growing number of older Americans are choosing to forgo homeownership in favor of renting instead. A recent study by Credit Sesame found that 33% of baby boomers and 46% of seniors 65 and over are making a conscious decision to rent their homes rather than buy, even though they can afford the latter option. It therefore raises the question: Is homeownership later in life such a good idea after all?
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Source: Fool.com
