Should I buy a home or rent at 62 years old?
Hi Terry,
I recently sold my condo and don’t know if I should rent or purchase a home at 62 years young. . I would like to continue working for 7-8 years and work for the city so must remain in the city limits. I have not been the best financial steward so will have a mortgage. Does it make sense to buy a place which I probably will stay for 10 years or continue to rent? Should I use the proceeds of the condo sale to put into savings/investments or use hem to purchase a place? I have a small amount of money in a 403 plan, will have a pension . Thank you for your time and help.
Terry Says
OK, this is a tough question, but in your situation, I think you should rent — and put the money in a SAFE place. Let me say, that I’m assuming you live in Chicago. If that’s the case, I see a cloudy future for the value of condos. The city — and state– are going to have to raise property taxes. Of course, that would be passed on in a higher rent, as well, but I just don’t think this is the time to buy in the city of Chicago!
(If you live elsewhere, the answer might be a bit different, since at this point you could get the lowest mortgage rate in history.)
If you do decide to rent, consider ALL the money you have saved to be “chicken money.” Put it in a bank in one-year CDs. You won’t earn much– but you won’t lose ANY! Keep contributing to your 403(b) and inside that plan choose some stock market exposure, but the most conservative funds. Better safe than sorry. And keep trying to save as much money as possible, after taxes, to add to your stash of cash.
