It’s better to rent a new home than to buy one in retirement. That’s according to Trulia’s latest Rent vs. Buy Report, which considers whether it is cheaper to rent or buy a retirement home.
Buying a home in retirement is only more beneficial than renting one if retirees care about leaving an inheritance, the report says. The value of the equity in a home is a major contributor to the financial benefits of homeownership, but if retirees don’t have any heirs or don’t wish to leave an inheritance, the equity in a home loses its importance.
Consequently, when this value is dismissed, the benefits of owning a home as opposed to renting a home drop.
All things considered, renting a home is the superior option for the retired households that don’t care about the equity in their home at the end of their life in 98 of the 100 cities with the most retirees.
But it’s a different story if retirees do care about leaving an inheritance. For them, it’s less expensive to buy a home in all of the 100 U.S. cities with the largest share of residents aged 65 and older than it is to rent one.
And Charleston, SC is on the list of top 10 retirement cities for these reasons: water frontage, warm climate, robust economy, good state tax environment, cost of living about national average, low crime, high bicycling grade. Want to retire here? For more information on apartments in Charleston, SC, contact Abberly at West Ashley.