Rent vs Owning A Home. What Should You Do (50+)?

Curious, what percent of 65+ year olds have a mortgage? Or how much the average 55 - 75 year old's mortgage balance is? Today's video that question and leads into a discussion on the pros and cons of having a mortgage as you approach the Youth of Your Senior Years™

Errata: Several times at the beginning of the video, Azul mentions "Own or buy" he should have said "Own or rent".

YouTube videos with more details on the "rent vs own" a home calculation:

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The decisions on how to invest, when to retire, and other financial planning topics are some of the most important financial decisions you will make in your life. I urge you to seek professional financial advice as you make this decision. Ideally, from a financial adviser, AND a CPA AND an attorney. Having the perspective of all three professions will help you make the right decision for you and your family.

This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and may NOT be suitable for all investors.

This information is NOT intended to, and should NOT, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, and/or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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[kathrynnielson]

My husband and I bought and sold four homes the first 25 years of our marriage. 4 1/2 years ago we sold it and most of our stuff and moved into an apartment. Best. Decision. Ever. We ducked at home ownership. We love the freedom of someone else fixing the stuff that breaks and putting the money we would spend on repairs toward travel. We have traveled so much these last four years, and it’s been great. No regrets.

[De-Centralized]

I had a 3% 15-year mortgage that I paid off way early during the initial stages of the pandemic. I know some feel that was a mistake. But the psychological benefits are immense!

[donnanorris]

Been in my home for 28 years. No desire to leave. The wow is WOW I own my home :-).

[dgs]

Never wanted to be a homeowner. I can see the financial advantages, but it just never appealed to me. I wish I liked gardening, but I don't. No desire to spend time taking care of property beyond housekeeping. I'll continue to rent. Appreciate your video's outlining of qualitative and quantitative considerations.

[DiFinni]

I most likely won't ever live in a house. I am divorced now, 17 years later moved into an apartment and still here. I did own 2 rentals but sold both the past couple of years. I don't mind renting forever at this point. It is what it is, and I just do what makes sense now.

[kenbarthSimAVtor]

We bought in 2014 at $330, 000; we have $242, 000 remaining to pay; mortgage payment is $1, 430.00 per month; which nowadays is cheaper than rent; it will be our daughter's inheritance which will be when my spouse and I pass away. Mortgage free is only if my few lottery ticket(s) hits the jackpot eh!

[Johnlowery_music]

I bought my first home for $500k with my life savings at 33 and lost it in divorce at 40. I avoided bankruptcy by paying off all of my debts, but by waiting so long to become debt free, the market skyrocketed to the point where I could no longer afford to buy property where I live. Thankfully, I have found ways to still invest in real estate while renting and I travel a lot more as I'm no longer house-poor or have to worry about big repairs.

[tompointer]

On a different note. I look at the background scenery in your videos and try to figure out where you are. This one was easy. Welcome to Austin. Sorry about the heat wave.

[Delaney]

Azul, love your videos. I'm 49, divorced, paid off mortgage, close to groceries, the beach, best pizza in town, no complaints. Have 6 years to go for a 79.5% pension which will equal 67, 575 but 501K, gov, only 120000. Ran the numbers other than healthcare, no issues. Can you make a video on costs of that. Would love to jump out of the rat race at 55 but healthcare costs and insurance are vague. Thanks again for the videos, trying to be proactive before it's too late.

[anthonyfung]

Thanks for making great videos Azul. Can you please tell me where this video is filmed? I love the background, looks beautiful with amazing weather! Thanks!

[matthewh]

Portland Oregon. My house property tax is about 1.5% but it’s very random here. Totally depends on house and neighborhood

[sircharlessinderhorn]

I’m more the adventurous type I suppose in that after I retired 6 years ago I moved to Phuket Thailand. Even though it’s the most expensive place to live in Thailand as it’s a high end island vacation destination, the rent is very affordable at $600/month for a modern 2/2 house 5 minutes from a west coast beach. Not having to deal with the home ownership responsibilities I’m able to enjoy a totally stress-free retirement and do as little or as much as I want.

[jayanddeesretirementjourne]

I enjoy your vidéos! I am 54 years old and have a mortgage. My interest is 3.5%. I owe $530k left on the mortgage. Have around $700k in equity. Plan to retire In 3-5 years. Going to sell everything and travel!

[graywilliams_.]

For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.

[duneme]

Home Owner and Landlordx4!
Amazing Returns!
I’m hoping my Rentals will Pay for our Retirement!

[jdenino]

Our house is paid off but our state has high property taxes and the costs of maintenance is high to maintain the lawn, fences, appliances, etc. I would not want to live in an apartment. Luckily we bought a smaller home 22 years ago that was considered to be a big house in 1980 (2200 sf) and so we don't need downsize bc the house isn't tremendous. We are surrounded by newer houses that are over 3500 sf and their taxes are more than double ours. We have a lot of professionals in our neighborhood with college degrees and the schools are considered to be good. A house 2 doors down from us recently sold in just 4 days. our property tax costs us about $860 monthly which will continue to go up unfortunately.

[edshipe]

Yup 61 here was laid-off last year. Currently working part-time and may just keep doing that and start SS at 62. House is paid off no debts biggest pain is paying property taxes here near Pittsburgh PA. Otherwise cost of living here isn't to bad.

[timshull]

Im 64 bought my first home at age 57 (late bloomer I guess??) moved in here as a renter when I was 30. Got a screaming deal 1600 sgft on 5.5 acres for 400k.I owe 140k want to retire in the next year or so, not an ideal situation but here I'm. Good news is this place is worth close to 800k

[michaelgrabowski]

I read the Readers Digest about Die with Zero. I think a lot of people what safety as opposed to experiences. Personally we have done a lot of traveling.

[KikiAndJeffreyPearl]

Great Video! We did real well buying and selling homes (our own homes), we still own two Ski condos, one “we live in” we travel lots. The other is in a rental program and makes a few bucks.

We are renting a house this year closer to our kids. This question about buying another house or renting is in front of us.

I like your 1% and 1%, but what about loss of income as well? If you have the cash “in the bank” it’s pretty easy to make 5% these days. If you use it to buy instead of renting you lose the income. Right? Thoughts?