The conventional wisdom is that buying a home is the best use of your money. What some are finding is that isn’t necessarily the case. This is especially true of baby boomers and millennials. In many ways they are better off renting. Here are a few reasons why.
For baby boomers renting after retirement actually makes sense. Boomers are downsizing in record numbers. Their children are grown and out of the home and they find that there is no need for the larger home. Instead of opting for a retirement community or assisted living home, some are seeing that renting a home or apartment is a better option. Apartments make basic cleaning and maintenance a lot easier for anyone.
Maintenance is a big reason for renting. Not only for basic cleaning, but also when things break.
In their owned homes if the kitchen sink backed up they would call a plumber. In a rental if the kitchen sink backs up, you call the landlord who calls the plumber… and pays the plumber as well.
Renting provides flexibility for boomers as well. If, as they age, they find they need more help than an apartment will provide, they have the flexibility to move into an assisted living facility without having to worry about selling a home.
For millennials renting provides some of the same benefits as for boomers. Millennials are just getting started so the need for a large home isn’t there yet.
The same maintenance issues are solved for millennials renting. They don’t have the know how to fix things since the landlord does it all. They also need the flexibility since getting started in a new career may entail a move. Being able to be move more quickly than you could if you owned a home is important for those looking to be upwardly mobile in a new career.
For millennials the expense is also a key factor. While it may seem cheaper to buy a home, there are hidden expenses. Things like real estate taxes, condo fees and those costs to maintain your home.
So if you are a boomer or millennial, weigh your options and don’t be afraid to go back to renting. It might be the exact solution to all your questions.