Renting Can Be Good

For retirees, renting can be a savvy move

For retirees, renting can be a savvy move

By SCOTT BURNS
Universal Press Syndicate

Q: Our townhome will be paid for in two years. My husband and I will both be 61. If we sold at that time, we would probably walk away with $400,000 to $450,000. The townhome will be about 15 years old. I am sure there will need to be some repairs — new roof, siding, etc.— because of the age of the building.

Why would it not be better to invest the money in a CD at 5 percent interest? That would yield about $20,000 a year without ever touching the principal. Then we could rent rather than own. I realize homeownership may eventually gain income, but homes also take a lot of money to maintain.

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A: Very good idea. And ahead of the crowd. You are likely to find that the rent and utilities will be less than the operating cost of your house. And since you'll no longer have equity tied up in a house, you can put it to work to pay your rental expenses.

SEE?!