TAMPA, Fla. (Ivanhoe Newswire) — It’s a big decision for retirees. Should I buy or should I rent?
A MetLife study says there’s good news for women; they’re still living longer than men. The bad news; they usually have less retirement income than men. So the million dollar question is… buy or rent?
“When people are going into retirement there are more and more things that they’re uncertain about. They’re uncertain about their health, uncertain about their income are they going to run out of money, is their money safe in the stock market you know, things like this.” Celine Pastore said.
Pastore is a wealth of knowledge. She is a financial advisor who specializes in planning for women.
“There’s a lot of concerns I think when it comes to buying versus renting.” Pastore continued.
If they’re in transition, she says women should rent.
“If you can afford to own, if you have the money and the credit obviously, that’s an important factor, then I definitely think owning has a lot of advantages.” Pastore explained.
And the advantages make sense. Pastore says mortgages are a great tax deduction and can help with Medicaid coverage if a spouse is in a nursing home.
“That mortgage payment can help to preserve some of your income for your household while your spouse is in a nursing home.” Pastore said.
Freedom mortgage crunches the numbers even more: buy a house for 130-thousand dollars with 20-percent down. Your monthly mortgage: about $1,100 a month. Renting the same place: $1,400. Renting means no additional expenses for a broken air conditioner, a leaking roof or plumbing problems. And you still have your 20-percent down payment to invest!
So, go into the golden years asking questions. Renting may surprise you as an option that makes sense.
Pastore also says don’t put children on the deed of your house. Don’t cancel credit cards, and she says don’t use a house as collateral for a loan for you or your child.
Contributors to this news report include: Emily M Gleason, Field Producer; Christopher Tilley, Videographer; Roque Correa, Editor; Gabriella Battistiol, News Assistant.