Should I Buy or Rent During Retirement?

The decision to buy or rent during retirement depends on several factors, including your financial situation, lifestyle preferences, and long-term plans.

Owning a Home

One advantage of owning a home during retirement is that you have the potential to continue to build equity and have a valuable asset that can be passed down to your heirs. Additionally, owning a home provides stability and a sense of security, knowing that you have a place to call your own.

However, owning a home also comes with financial responsibilities, such as property taxes, maintenance costs, and repairs. If you’re on a fixed income during retirement, unexpected expenses can be challenging to manage.  

In Ontario, there are different new taxes for underused property.  If you plan to go on a lot of vacations and do not reside in your property for an extended period of time, you might be subject to these taxes.  


Renting, on the other hand, can provide flexibility and freedom from financial responsibilities associated with homeownership. You may also have access to amenities such as community centres, fitness facilities, and swimming pools, which can enhance your quality of life during retirement.  

While renting, a lot of the repairs would be done by the landlord which can reduce work.  But you would not be able to decorate or modify the property to your liking. 

However, renting means you don’t have the potential to build equity, and your housing costs may increase over time due to rent hikes. You also may not have as much control over the property and may need to follow certain rules and regulations set by the landlord or property management company.

In addition, it might be difficult to find a location you like as landlords might want to rent to people who can show stable pay stubs.  You might find it frustrating to rent a location that you like at a price that you want.  

Ultimately, the decision to buy or rent during retirement depends on your personal preferences and financial situation.

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