Deciding Between Buying and Renting: A Guide for Orlando's Baby Boomers

Are you a Baby Boomer residing in Orlando, contemplating a change after years in your current home? The decision to sell brings forth a multitude of considerations. Will you remain in the vicinity or explore new horizons in a different state? Is downsizing on the horizon, or do you seek more space for cherished ones? Perhaps the paramount question is whether to embark on a new home-buying journey or opt for the simplicity of renting?

Ultimately, the choice hinges on your specific circumstances and future aspirations. To aid in your decision-making process, let's dive into two pivotal factors.

Anticipate Rising Rental Costs

The trajectory of rents, as illustrated below using data sourced from the Census, highlights a consistent upward climb since 1988:

Median Asking Rent Since 1988

With rents exhibiting a sustained upward trajectory, opting to rent entails the risk of encountering escalating rental payments upon each lease renewal. The prospect of elevated rental expenses on an annual basis might not align with your preferences.

In contrast, securing a home with a fixed-rate mortgage confers the advantage of stabilizing your monthly housing expenditure. This empowers you to lock in your monthly payment for the entirety of your home loan. This stability ensures that your payments remain steady and foreseeable over the long term. As succinctly stated by Freddie Mac:

“… 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.”

Unlocking the Distinct Benefits of Homeownership

AARP asserts that, in the long run, purchasing your next home stands as a superior strategy compared to renting:

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

To aid in your decision-making process post-sale, let's explore some of the benefits of homeownership:

  1. Building Generational Wealth: Owning your home can serve as a foundation for accruing wealth that may be passed down to your loved ones, enhancing their quality of life.
  2. Potential Elimination of Monthly Mortgage Payments: If you possess sufficient equity to purchase your next home outright, you may forego the need for a monthly mortgage payment. While responsibilities such as property taxes and maintenance fees persist, the relief of not managing a monthly mortgage can be substantial.
  3. Facilitating Aging in Place: With ownership, you possess the autonomy to implement renovations and updates that streamline everyday life should your needs evolve.

Expert Guidance for Your Next Chapter

For Baby Boomers in Orlando deliberating between buying and renting their next abode, consulting a reputable real estate agent is paramount. With rental costs on an upward trend and homeownership offering an array of advantages, leaning towards purchasing your next home may align seamlessly with your goals.

Ready to embark on this new chapter? Contact us for expert guidance tailored to your unique situation.

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