Pack Up All Your Cares & Woes
Sell Your Home & Move To A Rental. - Enjoy a simple, care-free lifestyle instead of worrying about the responsibilities of homeownership

There are times when homeownership makes sense and there are times when renting makes sense.

While homeownership has its benefits, it is a long term financial commitment with numerous obligations and maintenance responsibilities. Homeownership is appropriate for people whose incomes are stable (or growing) and for people who plan to live in one location for more than 10 years.

On the other hand, for those whose incomes are limited, or for those who are not sure where they will be living in 10 years, renting has many advantages and it is quickly becoming a popular trend.

Because of the high demand for rentals, many developers are now building residential rental complexes and, as a result, there are numerous new options in Lower Westchester for people who would prefer to rent.

REASONS RENTING MIGHT BE BETTER THAN OWNING
It’s a surprisingly long list.

REASON #1:   Increase The Size Of Your Retirement Fund

Re-Invest Your Home’s Equity:
When you sell your home, you will be able to add the "profit" from the sale to your retirement nest egg. For many homeowners, the gain from the sale of their home will be fedral tax-free and that tax-free gain can then be reinvested in something else.

REASON #2:   Lower Your Expenses
In general, it costs less to rent than it does to own.

No Home Maintenance:
The landlord is responsible for all maintenance & repair work on the property. Including the lawn, exterior of the building, snow removal and the appliances.

No Real Estate Taxes:
An obvious benefit that renters have over homeowners is that they do not have to pay real estate taxes. Real estate taxes can be a hefty burden for homeowners and they seem to grow continuously.

Low Insurance Costs:
Renters only need renter's insurance.

Low Utility Costs:
It is often much more affordable to heat and power an apartment or small rental home. In addition, some rental buildings include utilities like heat and water.

Low Upfront Costs:
Upfront costs would be limited to a security deposit and a month’s rent. No down payment. No title insurance. No closing costs.

REASON #3:   Less Commitment - More Flexibility

Without a long term commitment, renting allows you to make changes to your life more easily. Renting provides the flexibility to experiment with new locations & new lifestyles. Renting is an opportunity to “audition” new communities.

REASON #4:   Convenience - Comfort - Simplicity

Access to Amenities:
Amenities such as concierge/doorman services, elevators, indoor parking, storage areas, laundry facilities, universal design features (i.e. grab bars in the tub), swimming pools, tennis courts or fitness centers are available at many rental complexes at no additional charge to tenants.

Hassle-Free Repairs:
Just call the super. When a repair becomes necessary, simply notify the super, the landlord or the management office.

Live Near Amenities You Enjoy:
Move to a location with walk-ability to popular stores, restaurants, parks, entertainment and public transportation.

Live Near Family:
Besides being able to visit more frequently, moving closer to your family means travel expenses & hassles will be less.

An Opportunity To Travel:
As a tenant, there is no need to have someone check on your house while you are away. Just lock the door & go.

SUMMARY - Renting Is Less Stressful & More Practical

• Lower Expenses
• Less Commitment
• Less Responsibility
• More Convenience
• LESS STRESS
• Upfront costs are low.
• Expenses are predictable.
• Obligation is short term.
• No maintenance or repair concerns.

CONSULT WITH YOUR FINANCIAL ADVISOR
For many people, renting, rather than owning, is a very smart financial option.

When you own a home, you have a significant amount of equity tied-up in a single illiquid asset.

To continue owning that home, there are numerous “unrecoverable costs”. Expenses like maintenance, repairs, mortgage interest & real estate taxes are, essentially, “money down the drain” & these costs are not as deductible as they once were.

In addition, there is the lost opportunity cost of having your equity tied up in a single asset (a home) rather than in a faster growing, more diversified, more liquid investment account.

© Copyright 2016 Bill Boeckelman Publications