• Question
  • Would we benefit if we sold our house and rented

    Asked by a 71 year old woman from Easley, SC on 7/1/2012

    Would we benefit if we sold our house and rented?

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  • Categories: Housing, Tapping home equity

Answers

  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • Selling your home and renting is a viable option for tapping home equity for retirement!

    Of course whether or not this will ultimately be a winning financial strategy is dependent on a number of variables. The following questions may help you determine if your retirement finances will benefit from renting:

    1) How much will your house sell for now? How much might it sell for in the future?

    2) If you stay in your home, what are your maintenance costs and taxes?

    3) For how much less money than your mortgage payment can you rent a home?

    4) In general, in the community where you wish to live, are rents lower than the mortgage on the property?

    5) How confident are you that rents will stay at current levels? What will you do if they rise dramatically?

    6) Have you considered downsizing into a smaller mortgage?

    7) Have you considered a Reverse Mortgage as a way to retain home ownership without monthly mortgage payments?

    8) If you or your spouse require a stay in a long term care facility, would you be better off having rented or staying in your home?

    We hope that these questions help you assess your housing situation. You can find more information about housing and retirement here:
    http://www.newretirement.com/home-equity.aspx

    And, thank you for using the NewRetirement Retirement Calculator. Log in anytime to update your information or try new scenarios.
    http://www.newretirement.com/

  • Login to rate this answer:   Answered on 7/2/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.