Never buy a house based solely on the market. Say they did not have a mortgage and, after closing and moving costs, clear $480,000, which they invest in … Deciding whether to rent or buy a … Even if you’re financially ready to buy a home, you should still be sure your heart is in the purchase. Buying a new home in retirement isn't always wise. If you are age 60 or above, and have decided that it’s time to buy a home—whether to downsize, retire, or for some other purpose—you’ll have to think carefully about the best way to finance it. Here are five reasons why you should buy now rather than wait until you retire. They should consider a ranch-style home or a house that has a master bedroom and bathroom on the main floor." ... running out and buying a new home will likely not make financial sense. As a retiree you don't need a third or fourth bedroom. For example, Mr. and Mrs. Smith have a house in Toronto they have just sold for $1.5 million. They have decided to move to Niagara-on-the-Lake and buy a bungalow for $850,000. So, before you make your decision, consider the pros and cons of buying a house. Should I rent or buy a home in retirement? Published: January 07, 2015 03:15 PM. Buy when you’re financially ready. They sell the house and rent an apartment for $2,000 a month. A mortgage is a big expense, and even if you do get approved for one, it isn't always the smartest financial move. Buying Pros and Cons. So why would you buy a 2,000 or 3,000-square-foot house with a big lawn when it's just one or two of you? Buying Pros. Buying a House Near Retirement Age: Should I Take Out Mortgage or Pay All Cash? Pros and cons of financing a home with debt when you're over 60. 3. Whether to rent or own in retirement is a big decision that should not be taken lightly. This will give them approximately $600,000 (after costs) to live the retirement they have been dreaming of. 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