8 Reasons Why You Should Own Your Home When You Retire

Eight Reasons Why You Should Own Your Home When You Retire

Owning your home at retirement may be a good option, but at the same time it may not be the best choice for everyone. Below are 8 reasons why owning your home at retirement may be a good option.

1. Emotional Security

Owning a home provides a profound sense of security, knowing that you have a place that is entirely your own, free from the uncertainties of renting, can bring you the peace of mind, allowing you to make the other decisions you need to make in your life. By owning your home in retirement, you are in control of your living environment.

2. Location Stability

When you retire, you are leaving the work force. This means you are leaving behind work friends, contacts and daily routines. Minimizing changes in your life is often beneficial for your retirement health and mental health as you transition. Staying in a familiar location provides you this sense of continuity and stability.

3. Your Home Becomes An Asset of Last Resort

In times of financial hardship likely in your later years if you are not planning things correctly, owning your home means that you have a significant asset that can be sold to generate the funds you need to meet these circumstances.

4. Your Home Becomes the Hub

Owning your home provides a stable familiar environment where family members can come together for dinners, anniversaries and other special occasions. This helps maintain a strong family bond.

5. Safety Net for Loved Ones

Your home allows you to extend security to your loved ones. Your home could provide some relief to your children who may want to stay with you temporarily because of bad things happening to them, like divorce or job loss, or transition between homes or jobs. Your home offers a place of refuge and support.

6. Ability for Personalization and Comfort

Your home allows you to personalize your living space, to suit your needs and taste. This can bring a lot of well-being to your retirement. Having a space that you can control based on your needs is important as your health changes over time.                      

7. Tax Benefit

As a retiree, when your home is your principal residence, you can transfer it to the next generation without paying any capital gains on any increase in its value. No matter how valuable the property is, it will be passed on tax free. This makes owning a home an attractive estate planning option (by no means the only option).

8. Rental volatility

The rental market can be unpredictable, with rental prices often increasing year-over-year faster than inflation. This volatility can be a significant stressor to you as a retiree, especially if you are on a fixed income. Owning your home means your long-term housing costs are predictable. It is likely limited to property tax, insurance and maintenance fluctuations.

Working with our real estate professionals will enable you to set realistic expectations that help you achieve your real estate goals in this dynamic market. If you are looking to buy or sell a home, contact us by email or call us on 604 913 1000.