Renting

From wikiSenior

The Rent-or-Buy Decision

This decision can be quite different for seniors than it is for younger adults. For seniors,

the tax deduction for mortgage interest is less attractive because, with mature or no mortgage payments and lower tax brackets, it has little impact.
the leverage of home equity is limited to reverse mortgages, the last will, or medical expenses.
the headaches of home maintenance can be burdensome.
the exposure to significant homeowner association assessments can be worrisome.

Although renting frees a senior from these issues, it comes with issues of its own.

Rents can and do rise.
The ownership of rental properties can, and often does, change.
The level of care and maintenance exercised by any owner can vary greatly.
Neighbors can change more frequently.

Whether it is less expensive to rent or buy depends entirely upon the market. When rental properties are scarce and demand is high, the cost of owning might prove to be more attractive. If the balance is reversed, the opposite is true. An interesting financial analysis can be made by dividing the market price of a home by the annual rent of a similar home in the same neighborhood as described in a recent article in the NY Times. The result of that calculation was referred to as the rent ratio. In this article, the author makes an interesting comparison that when the rent ratio exceeds 20, it is financially smarter to rent.

Finances, however, are only one part of the equation. Each day you defer the choice of where you want to "just be" carries its own cost as well. Your relationship to a view, an ambiance, or a neighborhood carries its own rewards.

[edit] Actions:

Talk to a banker or financial professional to determine what is possible financially.
Learn about the real estate rights and laws for renters in your state.
If you can afford to, let the decision be influenced by your lifestyle, e.g. freeing yourself from the need to rake the leaves from the yard.
Visit any rental property both during the week and on the weekend, and note the activity and friendliness of the people you see.
Let your final choice be guided by the place where you want to be each day.