As the boomer estate sales become the dominant source of homes for sale, their buyers can expect to do some work. In most cases, there will be a lot to do!
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Are you a baby boomer who’s lived in your current Boston condo for a long time and you’re ready for a change? If you’re thinking about selling your Beacon Hill condo, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent an apartment instead?
That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.
Expect Rents to Keep Going Up
The graph below uses data from the Census to show how rents have been climbing steadily since 1988:
Rents have been going up consistently over the long run. If you choose to rent an apartment, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.
When you buy a condominium with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this:
“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”
Owning Your Home Comes with Unique Benefits
According to AARP, buying your next home is a better long-term strategy than renting:
“Though each option…