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Evaluating your budget and needs in a home will allow you to make an informed decision about whether to stay where you are or move to a more affordable home. A large part of your spending in retirement will be on housing, so you want to ensure that you continue to make smart financial decisions.
Think About Your Budget and Needs
Consider the Risks
When you own a home you are more than likely getting “more for your money”, meaning that the payments you make are going towards the overall balance whereas with renting the payments are not. Along home ownership brings more responsibility for the general maintenance and upkeep of the home as well. Additional costs to keep in mind include those that fluctuate with inflation, like taxes and insurance.
With home ownership, be sure that you are able to keep up with the maintenance of your home or budget for someone to do it for you. Things like gardening and household fixes may prove more difficult, so having a plan to take care of the fixes is essential.
Overall, you don't want to compromise your retirement budget in order to have a more luxurious home or spend more than you can afford by staying in your current home. Planning your spending and sticking to a budget is extremely important in retirement. No matter which option you choose, make sure that you shop around and compare all the costs before making a final decision.