Here's When It Makes Sense to Rent In Retirement

Comments · 65

• DU

  @dustypencils9289 · 3 years ago

  I sold my home and now rent. Invested/saved the proceeds from the sale. You are the first person to refer to proceeds from the sale as “equity” that continues to grow in other types of financial accounts. Thank you.

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• BA

  @barbarahall5514 · 3 years ago

  F- owning a home…too much work.  Owning a home is a money magnet! I got dreams and things to do and dreams to fulfill forget anything that has anything to do with keeping up with the maintenance of a damn house!   Down size get rid of crap and spend it on doing fun experiences! Hobbies & interests you always wanted to do! Lord have mercy!!!!

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• MM

  @mm669 · 3 years ago

  The cost of home repairs has gone up so much in my area.  Unless you can do all those things yourself, you need to factor that in to owning.

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• DI

  @dianepinder8172 · 3 years ago

  Hi James, this is Diane and I am so grateful for your review of my question and you have given me great advice on what to consider. I love your podcasts, they are so informative and keep me off Twitter.  Again, thank you!

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• RI

  @rickchandler2570 · 3 years ago

  We’ve just retired and just also recently sold our paid off house.  We’re renting now and will be moving to Europe and renting there.  We may eventually buy but that’s only after we’re 100% certain of where we’re going to live.  Doesn’t make sense to us to buy when we’ve not lived in a certain place for any length of time.

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• SU

  @SusanShim-m2j · 2 years ago

  The cost/savings of renting is (investment income from sale of house-rent) + (cost of owning: maintenance+tax+insurance). &nbsp;If you assume that rent is about 3% of the value of your home, and that investment income is 5% or more, and that owning a home costs about 3% of its value, then every year, you will save 5% of the value of your home by renting.<br><br>Even if you break even on the rent vs investment, you still save the cost of owning.

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• JU

  @juliepayn7696 · 3 years ago

  I like your videos in person more than the podcast. Keep up the good work.

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• JO

  @joecreek9305 · 3 years ago

  This was an outstanding overview. It covered all the nuances and did not just give a simple one-size-fits-all answer. Thank you.

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• CH

  @chessdad182 · 3 years ago

  I&apos;ve been on both sides of the fence with owning and renting. &nbsp;Most videos are against renting. &nbsp;But renting does have its benefits. &nbsp;If something breaks, not your problem. &nbsp;If a crackpot moves in next door, you can either move easily, or if in a complex, report them to management and normally three strikes and they are out. &nbsp;With a home, well.. we&apos;ve seen the videos of the neighbors shooting each other. &nbsp;I will omit some other situations that some may be able to guess.

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• AL

  @all4fitz · 2 years ago (edited)

  Such a critical item missed in this video! I&apos;m on the edge of my seat waiting for you to mention this. Hehe. It is all great content but I feel like financial advisors need to emphasize this point. As you approach retirement you need to consider the incredible benefit of possibly doubling your retirement savings overnight by leaving the US. Pick an incredible, colorful, active, welcoming city with close communities where an organic lunch is all around you for 2 to $3, a beer for $0.80, a CT scan for $218 (I just got one a few weeks ago in Mexico compared to $2,400 in Michigan). And since the focus of this video is rent, in many locations around the world you can rent a one-bedroom apartment in an incredible city near the beach for $3-400 a month with a gym, a pool on the 30th floor and personal laundry service. Since you can get a ride anywhere in the city for a dollar, you also save the cost of a car.... registration, insurance, maintenance and headache. <br>By considering non-US options it can make or break your retirement. It can also allow you to retire 10 years earlier.<br>Considering the ridiculous cost of living in the US and its broken medical system, and the incredible options in low cost parts of the world, means that the option of leaving the US should be mentioned in any video about retirement.

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• BE

  @beerman204 · 3 years ago (edited)

  Renting can fit the bill in many cases, as it does for me..(single male traveler) but the kicker is, as the video mentions, the trending upwards of rent prices. How high will it go? How fast? This is a growing issue for renters all over the country, and for society as well ...

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• RA

  @RaymondWong-u3m · 11 months ago

  There is an automatic 6% fee to sell a home. &nbsp;5% realtor plus 1% closing. &nbsp;Not to mention the time and energy and paperwork. &nbsp;If the money is a financial portfolio, my kids have very easy access to it. &nbsp;Also when you buy a home, you are stuck in that location.

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