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HilfeHilfe3 Jun 2018 15:59Buy a property that allows us to live comfortably and that can be adapted for aging in place later (ground floor unit). The reason was that our fixed rent period expired, the landlord wanted to raise the rent significantly, and we planned to expand our family. The house or apartment should realistically fit our income. Pay it off stress-free by the time we are 50 years old. Not build an oversized house and then constantly have to work on it, including cleaning.
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nordanney3 Jun 2018 16:22Living Only in Rental Properties in Old Age – My Personal Opinion. Why?
Owning a house: Ties up capital, involves ongoing costs (maintenance and renovation), and requires significant effort.
Owning an apartment: Same as above, with the advantage that there is at least a fixed service charge for the communal property, unless extraordinary measures are needed.
Renting: Rent is fixed – all other money can be spent on whatever you like (travel, living expenses, cars, hobbies, etc.). If something in the apartment breaks, I simply call the landlord.
Of course, the definition of “in old age” can be debated. For example, my mother (68 years old) moved out of her own apartment a year ago and now lives comfortably renting. With the proceeds from the sale, she can live worry-free without any restrictions well into old age.
Owning a house: Ties up capital, involves ongoing costs (maintenance and renovation), and requires significant effort.
Owning an apartment: Same as above, with the advantage that there is at least a fixed service charge for the communal property, unless extraordinary measures are needed.
Renting: Rent is fixed – all other money can be spent on whatever you like (travel, living expenses, cars, hobbies, etc.). If something in the apartment breaks, I simply call the landlord.
Of course, the definition of “in old age” can be debated. For example, my mother (68 years old) moved out of her own apartment a year ago and now lives comfortably renting. With the proceeds from the sale, she can live worry-free without any restrictions well into old age.
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HilfeHilfe3 Jun 2018 16:43Whereas you always have to pay rent, for your entire life. And it keeps increasing. A loan is fixed for 20 years if you choose a smart financing option. And income rises.
Rent is more expensive for us than our mortgage payments. Therefore, the idea of renting quickly became unrealistic for us, as rental properties usually don’t offer an ideal layout with less living space.
With our two-story house, a courtyard with a garage and carport in front, and a garden and terrace at the back, we enjoy a higher quality of life at lower costs compared to a three-room apartment with a small balcony, stairs to the front door, and a rented parking space.
With our two-story house, a courtyard with a garage and carport in front, and a garden and terrace at the back, we enjoy a higher quality of life at lower costs compared to a three-room apartment with a small balcony, stairs to the front door, and a rented parking space.
Current monthly payment is $775. Additionally, there is a home savings plan with $150 for reserves as the house ages.
By October 2022, we will be debt-free. What remains is the home savings plan, so renting would never have been an alternative here. A comparable apartment would be more expensive for us. Karsten
By October 2022, we will be debt-free. What remains is the home savings plan, so renting would never have been an alternative here. A comparable apartment would be more expensive for us. Karsten