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Subject:  Re: Rent vs Buy Date:  1/28/2004  6:03 PM
Author:  TTRoberts Number:  38799 of 90437

<< Wifeand I both retired in our 70s. Presently renting lovely apt 1300 per month after selling home 4years ago. Have had 1 rent increase of $40. Have total assets over 1 mill, social security,more than adequate income from pension,IRAs, dividends and interest Diversitied investments, approx 65% stocks,35% bonds. Is worth buying a condo now or staying put? Children will be taken care of from Estate Planning. Do not consider a home as investment. You opinions, advice and reasoning please. >>

Well, I feel it all really just DEPENDS . . . .

It depends on things like, whether the cost of ownership is less than renting. As I'm sure you know, there's more expenses to the home that PITI (Principle, Interest, Taxes & Insurance) and maybe some homeowner's association fees for a condo.

Also, it depends on just how you want to pay for the home. Are you thinking of paying cash or on carrying a mortgage??? If you do buy a home, I would argue that carrying a mortgage would be better as it keeps you're cash invested rather than just putting it somewhere where it doesn't earn anything.

What about flexibility in movement??? When you rent, it's easy to just up and move to somewhere else. When owning a home it's all that hassle of selling and maybe buying all over again.

On the other hand, rents tend to go up over time. If that's a big issue for you, then you've got to weigh this against those costs of ownership. But with the assets and security you seem to have and no apparent concerns for income taxes, it seems to me renting probably works pretty well for retiree with your resources. Over all, I feel it's really a matter of personal preferences more than a financial issue for you.

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