In the United States, one of the big tips when it comes to starting to collect a Social Security checkis to not have a mortgage. This is very important because leaving part of our Social Security money to pay for a house can turn into a financial disaster. And that is why it is never advisable to start collecting a retirement pension if we have not yet finished paying off our mortgage.
However, if we take a hard look at what we can do once we’ve finished paying off our home mortgage, the Social Security check may be the perfect income for us. When it’s time to pay off the mortgage, we have two options. The first is to enjoy our paid off home. The second, which is what we are going to talk about today, is to sell the house and make a lot of profit on it.
There are many reasons why selling our house and renting it out is a great idea. Let’s take a look at a few of these reasons, so you won’t have to spend your entire monthly Social Security check on paying all the monthly bills. Thinking about moving? Pay attention to these compelling reasons to rent.
Compelling Reasons to Rent on Social Security
There are several very different compelling reasons to rent on Social Security. However, they are mostly personal reasons. Let’s look at 3 more or less universal reasons that will help us understand why selling our home and renting may be the best idea for retirement.
You discover a new area. When we reach retirement and have paid the mortgage on our house, we know the neighborhood and the area inside out. This can become boring at some point. That’s why moving to a new rental place is exciting. Plus, since you don’t have a mortgage, it doesn’t matter if you pay your Social Security money in one neighborhood or another – you can move again whenever you want!
Better needs. You may have realized after so many years of living in the same house that it’s too big for you. This is very common, since the family is not as big as it used to be. So moving from renting to a small house is the best option. And if you sell your house you will get a lot of money for sure.
Forget about fixing the house. Any damage to the rental house is the responsibility of the owner. This means that what we pay every month for the house is the most we will ever pay. We won’t have to spend Social Security money on home repairs.
So if we sell the house and forget about problems related to it, we will have a better retirement in the future. Without a doubt, these three compelling reasons to live renting while collecting Social Security will help us make the final decision.