To Rent or To Own - The Debate Rages On

Of course as a Realtor I believe owning is better than renting but there was an article with some counterpoints from Saturday's Strib.

Here's an excerpt:

Angie Flitter, 57, downsized seven years ago when she traded her four-bedroom home in the suburbs for a cozy house in south Minneapolis after her kids got out of college.

Now she's starting to think about doing it again, and this time one of the issues is whether to buy or rent.

"Even though it's a small house, there's a lot of upkeep, and I'm getting kind of tired of it," she said. "If you pay rent, you don't have to worry about utilities and taxes, but you also don't have any equity."

She said she'll probably keep working as an accountant until she's at least 65, and she's not in a big hurry to move. "I think it's economically smarter to own if you can," she said, but at this point, "I'm unsure about what I want to do."

There are financial and lifestyle issues on both sides of that decision -- for Flitter and the increasing number of baby boomers who want to simplify their lives as they reach or near retirement.

For most people, lifestyle is the first consideration, said Gordon Jensen, a Brooklyn Park lawyer who is chairman of the real estate section of the Minnesota Bar Association.

Are they avid gardeners who wouldn't be happy confined to growing potted petunias on a condo balcony? When the kitchen faucet leaks, do they want to solve the problem with a call to the landlord? Do they have pets that wouldn't be welcome in a townhouse or rental apartment?

A FEW THINGS TO THINK ABOUT:

Upkeep Even with a condo, interior maintenance is the owner’s job; with a rental, you can call the landlord if a pipe leaks.

Gardening Is there space to do that if you rent?

Pets They might not be welcome in a rental. Could you bear to find them a new home?

Flexibility Can you travel without worrying about what’s happening at home?

Money Do you want to preserve assets for a spouse if one of you must go on Medical Assistance to stay in a nursing home?

Taxes Have you thought about tax issues, such as deductible mortgage interest on a home you own?

Home equity Can be tapped for a reverse mortgage or home equity loan.

More Here.