It's better to buy. In fact if retirees wanted to live comfortable lives, moving out to a country where the cost of living is cheaper, would be the best option. Move to the developing world and enjoy your life.
It's always better to buy in my opinion because when we do it we are getting things to ourselves and we are not paying money to other people. So nothing like buying instead of renting.
Unless you live in an area where mortgage rates are higher than rent rates, it probably makes the most sense to buy a property. In some places, rent rates are so much higher than mortgages that it even makes sense for 20-somethings to buy a property rather than rent one. I'd say buy if you can, and buy even if you think it's more expensive than renting because chances are high that that might not actually be the case.
Short answer, buy, because I am working hard to make sure we have a solid retirement. Longer answer, if circumstances absolutely dictate renting, we'll do so. It is not a first pick though as there is nothing like having your own place. A middle point, and one we've considered, is selling our current home and buying a small place out of the way.
I am making the investment in my house at a younger age to be able to either sell or live rent free at some point.
I think buying is better because once your mortgage is paid off you don't have to worry about paying any expenses every month. I still owe money on this house, so actually, I want to sell it and get something that I have no or minimal mortage on. I want to buy a foreclosure for my next house so I can actually maybe buy it outright, that is, if I can ever manage to sell this place!! I have really gotten tired of this area, and I don't like the fact this house doesn/t have a fireplace or garage.
kgord, Buying a foreclosure as a primary residence seems risky to do, and a potentially uncomfortable. Often, those homes have been vacant for a long period and have many problems associated with them. You might want to consider buying while you still have a primary residence, fixing it up a little and renting one of the two out. It would likely give you excellent income, and the cost of the foreclosure should be lower than a normal market house.
We have our own house with only a year left of the mortgage. That means it is ours when I retire from my job. It's nice to think of that because we used to rent for 7 years and I have experienced the feeling that I we were like throwing money on the rent. Now for my old age, at least I wouldn't be stressed in thinking of paying the rent. And in case we would need a big amount of money there is that property that we can sell. The house is such a good investment.
It really depends upon what your lifestyle is going to be. I can see a case being made for renting or buying. The pros of renting are serious - you can change locations or living arrangements relatively easily, no real maintenance or worry about major repairs, and no responsibility past the basic rental liabilities. As for the con mentioned - being kicked out of your home ... well if you were considering buying I assume you have money saved, so if you get kicked out just rent another place. There is no shortage of good rentals. If it's about leaving money to your kids well then you could give them the money before you die if you own your home free and clear.
That's definitely food for thought. If you had only 10 years left, would you really want to sink all your cash into a house or would you be prefer to rent and free up your cash to have a great standard of living in your final years? I've got no children so don't really have anyone to leave anything to. With that in mind, I think I'd be inclined to choose the good life over a house.
