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For retirees, this should be a simple choice between: Paying taxes and insurance on your current McMansion Downsizing to pay less taxes and insurance
by jqpabc123 1y ago
For retirees, this should be a simple choice between:
Paying taxes and insurance on your current McMansion
Downsizing to pay less taxes and insurance
Renting
For someone who owns their home, I can't imagine that renting is the most cost effective option. The only way renting might be better/cheaper is if you're stuck with a sizeable mortgage that won't be paid off any time soon. But even in this case, moving to something more affordable would still likely beat renting. You'll still have to move in either case.
- commandlinefan 1y agoI also hope to pay off the house and be able to leave it to my kids at some point.
- jqpabc123 1y agoIn other words, you're building equity. Renting builds equity for someone else. And they have every incentive to take all they can get.
- supertrope 1y agoDownsizing paradoxically does not save as much money as you’d expect from the square footage difference. Because of the scarcity of cheap houses and alternatives like apartments, townhomes, duplexes and condos, the new home can be just as expensive. Mortgage rates going up and the high transaction costs in real estate eat up the cash difference.