Should you rent or buy in a 55+ community?
An important decision that a client should consider before moving to an active adult community is whether to rent or buy. There are reasons for both; the individual’s financial situation, lifestyle and long-term care needs may lead them to choose one over the other.
A FEW AREAS CLIENTS MIGHT CONSIDER WHEN DECIDING BETWEEN RENTING OR BUYING INCLUDE:
| Renting | Buying in a 55+ Community | |
|---|---|---|
| INITIAL COSTS | No large upfront investment or entrance fees. | Buying can require a significant upfront investment, including a down payment and closing costs. |
| ONGOING EXPENSES | Monthly rent typically includes amenities and services, leading to predictable costs during the term of the lease. | Homeowners are responsible for property taxes, insurance, maintenance, repairs and likely HOA fees |
| LONGER-TERM COSTS | Rent can increase over time. | Costs of ownership are likely to stay constant unless intentionally changed by the homeowner or HOA. And homeowners may be eligible for tax benefits. |
| FINANCIAL RISK | The primary risk is in the possibility that the ownership of the rental community changes hands, faces insolvency or other issues that might impact its ongoing viability | Homeownership value can fluctuate with the real estate market. And active adult communities can have a more limited resale market because of their narrower age group |
| STABILITY | Stability depends on the lease and the landlord: if the landlord wishes to sell the property, change its use or increase rents, residents may be forced to move or make difficult decisions. | Owned communities are typically managed by a HOA designed to act in the best interest of owners, thereby providing a greater degree of stability. |
| FLEXIBILITY | Renting can make it easier to move if needs or circumstances change. | Ownership can mean less flexibility if a need to move arises. |
| FREEDOM & CONTROL | Renovations or improvements are typically disallowed or limited when renting. | Homeowners typically have more freedom to make decisions about their property and renovations. |
| COMMUNITY | Rental communities may have a greater turnover of occupancy, resulting in a constant change of residents. | Owning provides a sense of permanence and security with the likelihood of longer tenure for residents. |
If you are thinking about making a move, contact me today for a free Home Salability Assessment. I will come out to your home for a free 30 min consult and give you tips and tricks to prepare the home for the market. This can be done months to years in advance. Contact me at 267-397-6291.