Buying a house can be among the top priorities of any responsible individual with an eye to the future. Buying a home serves two purposes. First, it solves the physiological need for shelter and secondly, it can serve as a form of investment should you choose to sell the property in the future. These are a few reasons why owning a home is a smart and wise investment choice. It is preferable for Seniors to rent rather than buy for senior living Coeur d’Alene communities. Seniors can benefit from renting over buying.
However, there may be situations that will make owning a home counterproductive, especially if there is a senior involved. For people who are 60 and above, renting a home at a senior living community may actually be a smarter choice instead of buying a property. There are several valid reasons to back this claim. According to Ted Rechtshaffen of the Financial Post, “rising prices of homes and student debts can prevent people from owning a house of their own.”
Some of the problems associated with buying a house are:
- High transaction cost of buying one
Having the funds to pay for a property isn’t the only cost associated with buying yourself a home. Many people have gone for a house that was initially not their choice just because they couldn’t afford to pay agent commissions and other charges. Depending on the location of the house in question, some extra costs may be as much as 5% – 7% of the property value. If the value of the property is about $200,000, for example, you may pay between $10,000 – $15,000 as agent commission and other miscellaneous charges. These high transaction costs can put a strain on the pocket of a retiree who needs to spend as little as possible to maintain specific living standards over an extended period.
- Fall in Property Prices
Taking into account the realities of the global property, prices of real estate tend to rise and fall at periodic intervals, and when they do, they take time to rise again. Billions of dollars are lost to asset crashes, and unfortunately, many homeowners see their asset devalued overnight. Owning your own house is advisable, but buyers should also bear in mind that they can fall below the price you paid for it. While this is a risk a younger person can take, such falls in value can have devastating effects on an older person relying on pensions and other saved up benefits for survival.
- You may lose money
Fall in property prices is not the only way to lose money. Actual money can be lost as well due to special fees or land transfer taxes. In some highbrow areas, this can set homeowners back to the tune of tens of thousands of dollars. Houses that are primarily built for seniors have unique features and cost more than the average house. Paying so much for a home coupled with the tax liabilities that come with it can be financially crippling.
- If you are moving for health reasons
Some seniors are snowbirds who constantly leave their locations for warmer climates to protect their health. Frequent movers may find it difficult buying a house of their choice because they will not stay long in them. As a general rule, it is advisable only to buy a house in a particular location if you plan on living in it for the next seven years at least. This will save you from the stress and wasted resources moving homes frequently.
One fear associated with renting a house is the possibility of moving too soon, and this can be a psychological challenge for you if you are already settling in comfortably in the home. Having to change houses every two or three years can take a physical toll on the elderly, and this is indeed something to avoid. A real estate lawyer with Harris, Sheaffer LLP, Michael Baum opines that “Residential Tenancies Acts protect the interests of tenants” in the real estate market. With the protection enjoyed by tenants, the fear of forceful ejections is radically reduced if not eliminated.
While owning a home is a good thing to desire, it is not always in the best interest of frequent movers and the aging members of our population. If you are an adult citizen or you have aged parents or relatives in need of an excellent home to rent, make sure you rent a senior living property with a proper maintenance procedural service in place like Bestland Senior Living Community.