Buying a house is a large investment, no matter how old you are. If you’re considering buying a house at 65 years old, you should first look at your financial portfolio and perhaps even speak with a financial advisor to determine whether an investment of this size makes sense for you.
Is 65-years-old too old to buy a house?
If you’re 65, you’re not too old to buy a house — provided that you have the finances to make a down payment, cover your monthly mortgage payments, and keep up with expenses like maintenance and property taxes.
Is it better to buy or rent in retirement?
The decision to rent or buy in retirement ultimately comes down to your financial situation and goals. With a house, you’ll have mortgage payments and maintenance costs, meaning that you’ll have less disposable income to live off of.
Buying in retirement
Buying a house in retirement depends on your assets and your income. If you have to finance a house, understand that adding a mortgage amplifies your financial risk. Even people with a high net worth can lose big by borrowing too much if the house they’re in doesn’t increase in value.
Pros of Buying
– Build equity by paying down your mortgage. – No unexpected rent increases – Customize your living environment with upgrades, renovations, etc.
– You are responsible for paying for property taxes, homeowners insurance and repairs. – Limited mobility — you can’t easily pack up and move if your life situation changes. You’ll have to sell your house. – You may not have enough time for the value of your house to appreciate.