As a retiree, your kids have moved out and started families of their own, perhaps leaving you with a five-bedroom house and a large yard that may feel bigger than you can handle. If you’re 65 or older, you may be ready to downsize and let go of the upkeep that comes with homeownership and embrace the leisurely lifestyle and flexibility of retirement.
But when factoring in the steep homeowners’ association (HOA) fees of condos and townhouses and high mortgage rates hovering around 6.56%, per Freddie Mac, with no sign of easing, you may question whether buying in today’s real estate market makes sense.
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If you’re a senior who has built up substantial equity, renting can allow you to hold onto more of your home sale profits while avoiding the costs of a new mortgage. Plus, renting removes financial burdens such as property taxes, high home insurance premiums and maintenance, allowing you to keep more of your retirement dollars in your wallet.
According to Realtor.com, the cost of renting is significantly cheaper than buying in 50 U.S. metropolitan areas. Here are six cities where it’s better for retirees to rent instead of buy.
Raleigh, North Carolina
- Median home sale price: $443,820
- Average rent: $1,391
- Average monthly mortgage: $2,880
- Difference in monthly savings: $1,489
- What retirees love: Open green spaces and arts and culture.
Tallahassee, Florida
- Median home sale price: $292,963
- Average rent: $1,500
- Average monthly mortgage: $2,856
- Difference in monthly savings: $1,356
- What retirees love: miles of pristine beaches and year-round warm weather.
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Athens, Georgia
- Median home sale price: $344,000
- Average rent: $1,585
- Average monthly mortgage: $2,066
- Difference in monthly savings: $481
- What retirees love: A botanical garden, art museum, quality healthcare and lifelong opportunities at the University of Georgia.
Spokane, Washington
- Median home sale price: $385,250
- Average rent: $1,559
- Average monthly mortgage: $3,454
- Difference in monthly savings: $1,895
- What retirees love: Walkable downtown access.
Austin, Texas
- Median home sale price: $577,667
- Average Rent: $1,530
- Average monthly mortgage: $3,695
- Difference in monthly savings: $2,165
- What retirees love: music, dining venues and arts and culture.
Knoxville, Tennessee
- Median home sale price: $363,333
- Average rent: $1,850
- Average monthly mortgage: $2,557
- Difference in monthly savings: $707
- What retirees love: Small-town charm and access to the Smoky Mountains.
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This article originally appeared on GOBankingRates.com: 6 Cities Where It’s Better for Retirees To Rent Instead of Buy Their Home
