3 reasons why you should never buy a house in retirement

If you want to plan for your future retirement, you need to look at your finances holistically. Not only do you have to consider whether you have enough money to get through the day, you also have to figure out what that day even looks like once you’re the captain of your own ship.

Are you going to work part-time? Are you going to travel or start a business? These are all things to consider as you plan for your financial future. And since home ownership often accounts for half of a person’s living expenses, it’s also important to consider whether you’ll even own a home in retirement.

While I am a big believer in the power of owning real estate, I recognize that it is not for everyone. So here are some reasons why you shouldn’t buy a house in retirement.

1. You want to travel

There are many concrete financial reasons not to buy a house when you retire, but perhaps the most important reason is that you do not want to be stuck in one place. If travel is included in your retirement plans, you should have the freedom to live in Airbnbs or buy an RV and drive around the world, or spend half your year on a cruise ship and the other half visiting go visit the grandchildren.

Even if you get a mortgage with one of the best mortgage interest rates, they are still additional costs that will tie you down rather than free you.

2. The cost of owning a home

Buying a house is one thing, but owning it is quite another. Depending on where your home is located and what type of home it is, there may be significant costs associated with owning a home.

For example, right now the cost of homeowners insurance in places like Florida and the Gulf Coast of Texas is absolutely high. Even here in Missouri, homeowners insurance rates have skyrocketed, and we’re not even in a hurricane zone.

And that’s not all. There are also maintenance and emergency costs, which Angi estimates at approximately $2,458 and $1,667 in 2023, respectively. When you’re not even home for much of the year, it becomes increasingly difficult to justify spending money on your home. This also applies if your budget is limited and you have to make a lot of difficult choices about money in general.

3. The amount of time and energy a house consumes

However, owning a home requires more than just money. It also takes time, which you may not have much of if you have a long to-do list in retirement. Even if you can do your own maintenance and repairs, you may not want to. And cleaning a house that’s much bigger than you really need? Forget it.

According to a 2022 Angi survey, homeowners spend about 44 hours a month – the equivalent of an entire paid work week – maintaining their homes. If you don’t enjoy owning a home, you certainly won’t enjoy continually maintaining it.

This also goes back to things like traveling or just doing what you feel like. A home you own is your problem and your commitment, and you will have to balance its needs with your own.

Owning a home after retirement is not for everyone

Owning a home is not the guaranteed solution to everyone’s financial problems in retirement. For many people, a house can be an extra headache that they don’t want or need. However, if you think the opposite, go ahead and Check out our list of the best mortgage lenders to help you purchase the home in which you will retire.

Whether you’re renting or buying in retirement, you should look at all your options to ensure you make a decision that’s right for you today and in the future.