To Own or Not To Own
A large part or our "American Dream", at least the one I grew up with, is home ownership. Saving money to buy a home, working steadily to pay off the mortgage, one day getting the title of full ownership from the bank, this is all part of what being an adult was to me.
Having spent most of my life single and choosing to be a single, adoptive parent, buying came late, in my 50's. And when I did buy at that age I never had the expectation that I would have it paid off and live "rent/mortgage" free. And that was okay with me.
I made choices for me and my girls about how I used my money and am glad of those choices. Providing them with experiences and things was good for all of us.
So I now find myself with a home I love but also with a mortgage. Currently my housing is costing me (mortgage, condo fee, utilities, maintenance) over 60% of my limited retirement income. That doesn't leave a whole lot for other things.
It is a seller's market, so I have the opportunity to cash in on this investment. Because it is a seller's market buying a smaller home would pretty much use all the funds I get from the sale. I would still have a mortgage, though smaller.
And I would still be responsible, physically and financially for upkeep and maintenance. I don't want either. And I don't want to see my limited savings only going for a new furnace, new appliances, etc, etc.
So, after weighing all these factors I have made the decision that for me, now, the best choice is to rent. Whether I rent or buy, I will have a monthly cost. But, if I rent, all I have to do when the stove isn't working is call the landlord to fix or replace it. The funds I get from selling my place don't have to targeted for upkeep and maintenance. They can be available to me for whatever, just to be there as part of my legacy.
My retirement income does qualify me for some of the subsidized senior housing, just. Having worked at a housing authority I know I would prefer to not live in publicly owned housing, and I am blessed to be able to have a choice. These tend to be very, very small. If I had no choice it would be fine, but since I do, I opt for a bit more space.
There are a number of privately owned, subsidized senior housing apartments around. And so very many of them are quite lovely. So, I have begun the process of making applications and getting on the waiting lists. The downside of this is that is about a 5 year wait. And I want to do this now.
Market rents are about as high as mortgages. But I decided that I owned it to myself to investigate. Well, there are quite a few ample (700 to 900 sq ft) one bedroom apartments that I can afford. I've been looking them and there are plenty that would put my rent at 35% of my income, add other housing costs (utilities, etc) and my housing would drop to about 38% of my income. Having that other 22% for me sounds grand.
So, of the many, many choices needing to be made in this downsizing adventure, among the earliest was the decision to sell and rent. I will move into a market rental now, keep my name on lists for the future.
The benefit of the subsidized units is that the rent, which includes heat, is capped at 30% of income. For me to consider is I've become quite used to a dishwasher and in-unit laundry and may not want to give them up for a savings of only 8%. Then again, in 5 years or more I may no longer entertain and cook like I do now and having laundry "in the building" might be just fine.
So for now, a market rental while I see where and when my name comes up for subsidized housing. This plan suits me and will serve me well.
Next: Okay, I know what, but where?
Having spent most of my life single and choosing to be a single, adoptive parent, buying came late, in my 50's. And when I did buy at that age I never had the expectation that I would have it paid off and live "rent/mortgage" free. And that was okay with me.
I made choices for me and my girls about how I used my money and am glad of those choices. Providing them with experiences and things was good for all of us.
So I now find myself with a home I love but also with a mortgage. Currently my housing is costing me (mortgage, condo fee, utilities, maintenance) over 60% of my limited retirement income. That doesn't leave a whole lot for other things.
It is a seller's market, so I have the opportunity to cash in on this investment. Because it is a seller's market buying a smaller home would pretty much use all the funds I get from the sale. I would still have a mortgage, though smaller.
And I would still be responsible, physically and financially for upkeep and maintenance. I don't want either. And I don't want to see my limited savings only going for a new furnace, new appliances, etc, etc.
So, after weighing all these factors I have made the decision that for me, now, the best choice is to rent. Whether I rent or buy, I will have a monthly cost. But, if I rent, all I have to do when the stove isn't working is call the landlord to fix or replace it. The funds I get from selling my place don't have to targeted for upkeep and maintenance. They can be available to me for whatever, just to be there as part of my legacy.
My retirement income does qualify me for some of the subsidized senior housing, just. Having worked at a housing authority I know I would prefer to not live in publicly owned housing, and I am blessed to be able to have a choice. These tend to be very, very small. If I had no choice it would be fine, but since I do, I opt for a bit more space.
There are a number of privately owned, subsidized senior housing apartments around. And so very many of them are quite lovely. So, I have begun the process of making applications and getting on the waiting lists. The downside of this is that is about a 5 year wait. And I want to do this now.
Market rents are about as high as mortgages. But I decided that I owned it to myself to investigate. Well, there are quite a few ample (700 to 900 sq ft) one bedroom apartments that I can afford. I've been looking them and there are plenty that would put my rent at 35% of my income, add other housing costs (utilities, etc) and my housing would drop to about 38% of my income. Having that other 22% for me sounds grand.
So, of the many, many choices needing to be made in this downsizing adventure, among the earliest was the decision to sell and rent. I will move into a market rental now, keep my name on lists for the future.
The benefit of the subsidized units is that the rent, which includes heat, is capped at 30% of income. For me to consider is I've become quite used to a dishwasher and in-unit laundry and may not want to give them up for a savings of only 8%. Then again, in 5 years or more I may no longer entertain and cook like I do now and having laundry "in the building" might be just fine.
So for now, a market rental while I see where and when my name comes up for subsidized housing. This plan suits me and will serve me well.
Next: Okay, I know what, but where?
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