Equity rich and cash poor is no fun. Perhaps that is why a growing number of homeowners are choosing to sell their single-family home and rent a condo.
The choice to rent rather than buy can be liberating and a smart financial decision.
Maintaining a house can be tiring. As people age some rooms in a house may no longer be used. Stairs become a burden which further limits the amount of space actually used. Renting a condo with less space may mean more usable space. That smaller space is easier to maintain, clean and keep updated.
The cost of home ownership is high. Owning a million dollar house and insufficient cash to pay bills, maintain the home or have fun is not the best of situations.
Condo renting typically means lower maintenance costs, utility payments and the elimination of property taxes. The space is more easily heated and cooled making it more comfortable. Roof and appliance maintenance or repair becomes someone else’s responsibility. It is not unreasonable to expect the number of regular expenses to drop from 20 or more per month to two or three. Overall responsibility and work becomes much less.
For many, selling and renting a more practical living space offers no downside.
When travelling, there is less to do before leaving a condo home on vacation. Easy access to transit makes it easier to stop driving.
For seniors, independent living is practical for much longer. It is easier to maintain autonomy and avoid reliance on others for assistance.
Advantages of condo living increase when you live in a property where people like to socialize in common areas while avoiding the need to go outdoors in inclement weather.
Selling a single-family home and renting a condo is likely to free up the proceeds from a sale for investing. A moderate return can provide enough money to pay rent and expenses. There may even be excess funds available for travelling or other purposes without having to tap into the principal which can be used for retirement.