Should Baby Boomers Opt for Buying or Renting After Selling Their Homes?

If you’re a baby boomer contemplating a change after years in your current residence, the decision to sell your home brings with it numerous considerations. Will you relocate to another state or stay local? Are you looking to rightsize or perhaps require more space for your family? One of the most crucial questions you’ll face is whether to purchase your next home or opt for renting.

Your choice will hinge on your present circumstances and your long-term objectives. Here are a couple of key aspects to guide your decision-making process.

Anticipate Rising Rental Costs

The chart below, based on Census data, illustrates a consistent rise in rental prices since 1988. If you opt to rent, be prepared for potential increases in your rent every time you renew your lease. This escalating rental cost may not be something you wish to grapple with annually.

Stability with a Fixed Rate

On the other hand, securing a home with a fixed-rate mortgage can offer stability in your monthly housing expenses. This enables you to lock in your monthly payments for the life of your mortgage, providing a predictable financial outlook. As Freddie Mac succinctly puts it:

“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”

The Distinct Advantages of Homeownership

AARP suggests that purchasing your next home offers a more advantageous long-term strategy compared to renting:

“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”

Advantages of Homeownership

To assist you in your post-sale plans, here are some of the unique perks of owning a home:

Building equity in your home can serve as a financial cushion for the future and even offer generational wealth to pass on to your family.
If you have sufficient equity, you may be able to buy your next home without a mortgage, eliminating monthly mortgage payments. Though you’ll still have property taxes and maintenance costs, the absence of a mortgage payment can be liberating.
Aging comfortably becomes more feasible. Owning your property allows you the flexibility to make modifications that can simplify your daily life.

Bottom Line

If you’re a baby boomer pondering whether to buy or rent your next residence, reach out to Countryside Homes NJ and RE/MAX Select, and let’s explore your options. Given the rising rents and the manifold benefits of homeownership, purchasing your next home could be a wise move.

Client Testimonials for Countryside Homes NJ

At Countryside Homes NJ and RE/MAX Select, we pride ourselves on delivering exceptional service to our clients. But don’t just take our word for it—read what our satisfied customers have to say. From first-time homebuyers to seasoned real estate investors and new home builders, our clients appreciate our dedication, expertise, and commitment to their success. Here are some of their stories.

David R. New Homeowner

Collaborating with Keith LaBrunda and Heather Montalbano from Countryside Homes NJ and RE/MAX Select streamlined the home-buying process for me. They were attentive to my needs and preferences, ensuring they understood exactly what I was seeking in a home and what was within my financial comfort zone. Keith and Heather provided invaluable assistance during the offer stage, sharing insightful details that enabled me to place a successful bid on my desired property. They recommended associates to assist me with securing a mortgage, conducting home inspections, and acquiring homeowner's insurance. Post-purchase, they continued to be a resource, suggesting local companies to contact for internet, water, waste management, oil, and other essential services. The experience of purchasing a home with Keith LaBrunda and Heather Montalbano was seamless and enjoyable.

Rachel and Andre First Time Homebuyer

As first-time homebuyers, the process of finding and purchasing a home felt daunting. But from the moment we reached out to Heather and Keith at Countryside Homes NJ and RE/MAX Select, our worries were put to rest. Their team was incredibly patient, answering all our questions and guiding us through every step. They took the time to understand our needs and preferences, ensuring that we found the perfect home in a neighborhood we love. We were especially impressed by their vast knowledge of the local market and their commitment to ensuring we got the best deal possible. We can't thank them enough for making our dream of homeownership a reality. If you're in the market for a new home, we highly recommend Heather and Keith at Countryside Homes NJ and RE/MAX Select. They truly go above and beyond for their clients!

Prestia Family New Homeowners

From the moment we began our home search, Heather at Countryside Homes NJ and RE/MAX Select stood out as the epitome of professionalism and dedication. Her team's in-depth knowledge of the Rockaway Borough area and their unwavering commitment to our needs made our home buying journey not only smooth but truly enjoyable. As new homeowners in Rockaway Borough, NJ, we can confidently say that choosing Heather at Countryside Homes NJ and RE/MAX Select was the best decision we made. Her expertise, patience, and genuine care for our family's needs transformed what could have been a stressful process into a memorable and joyous occasion. We are beyond grateful for her support and would highly recommend her and her team to anyone looking to find their dream home. Thank you for turning our dreams into reality!