I’m 65 and Have Never Owned a Home — Here’s Why
Homeownership has long been the quintessential American dream. It symbolizes stability, success and a sense of belonging. However, recent data from the U.S. Census Bureau’s Housing Vacancies and Homeownership survey reveals that almost half of Americans, around 45%, currently don’t own a property.
Read Next: I’m Planning My Retirement: 5 Expenses I Wish I Had Cut Sooner
Find Out: The Surprising Way You Can Get Guaranteed Retirement Income for Life
For some, the hurdle may be financial — especially with the steadily rising costs of housing. But for others, like Rayan Adam, a 65-year-old sales associate living in New Rochelle, New York, homeownership has never really fit into their personal version of the American dream. GOBankingRates interviewed Adam about his decision not to own a home as he’s nearing retirement.
Wealthy people know the best money secrets. Learn how to copy them.
Reasons For Never Owning a Home
Adam has never owned a home and doesn’t plan to become a homeowner any time soon.
“There are many reasons why I never committed myself to homeownership, but I think the biggest one is that I’m a nomad at heart. I’ve moved around so much throughout my life –from country to country, city to city — and the idea of buying a home and settling down in one place just doesn’t resonate with me,” he explained.
Before moving to New York a few years ago, Adam spent most of his 30s, 40s and 50s traveling and working in different cities and countries, including Miami, China, Saudi Arabia and Nigeria. While many people view homeownership as the ultimate goal in life, Adam places travel and life experiences above all else.
“Sure, some people might think that I’m financially irresponsible to still be renting at 65 years old, but I think I’m doing just fine,” continued Adam. “I live in a small one-bedroom apartment by myself, and I’m enjoying life. Plus, the rent in New Rochelle, New York, is much more affordable than other parts of the Empire State.”
Financial Journey And Considerations
Besides working as a sales associate, Adam also has a side hustle where he sells used electronics online.
“Though I don’t make multiple six figures, I’ve saved a good chunk of change for retirement, and I plan to continue growing my side hustle to support myself after I retire,” he said. “That’s a few thousand dollars a month right there!”
Adam doesn’t plan to continue living in New York after he retires and is considering moving to Florida or a cheaper part of the country to enjoy his retirement years.
“I’ve lived in Florida before, and I loved it. Plus, Florida doesn’t have an individual income tax, so I won’t have to worry about paying an insane amount of taxes on my side hustle earnings,” Adam added.
Explore More: 5 Reasons Retirees Regret Selling Their Homes in Retirement
Reflections And Regrets
Adam believes that not everyone is meant to be a homeowner, and he’s one of them.
“I don’t regret not owning a home,” he shared. “I know this sounds cliche, but the world is my home. Renting has allowed me the freedom to pick up and go whenever I want while still having some sort of stability.”
However, embracing the nomadic lifestyle and renting does have its trade-offs. “While I have many friends around the world, the lack of community when you’re moving around so much can become quite lonely sometimes,” Adam admitted.
He understands that if you value a tight-knit community and want to establish roots, homeownership can be great as long as you can afford it.
“Now that I’m older, I’ve come to understand that relationships are the most important thing in life, and having a secure home in a close-knit community where you’ve known your neighbors for decades is truly a blessing,” he acknowledged.
Despite all this, Adam insists he has no regrets. He says he’ll make a point to get to know his neighbors and create a sense of community wherever he goes next.
Renting vs. Owning: The Pros And Cons
While Adam has decided that homeownership isn’t for him, that might not be the case for you. If you’re weighing your options, consider these pros and cons of renting vs. owning to help you make a decision.
Pros of Renting:
Renting makes financial sense if you’re an empty nester or unsure where you want to spend your retirement years.
As a renter, you don’t have to deal with major structural maintenance or routine repairs since that’s the landlord’s job.
Renting can free up capital for other purposes like investments.
In some places, renting can be cheaper than owning a house because renters aren’t responsible for property taxes and repair costs.
Cons of Renting:
Your landlord can increase the rent at any time, which means you have less control over your housing expenses.
You can’t build equity or leave an inheritance if you’re renting a property since you don’t actually own it.
You can’t make any changes to your apartment without the landlord’s approval.
Some landlords have a “No Pets” policy, which can make renting tricky if you have pets.
Pros of Owning:
You have more stability and control and don’t have to worry about a landlord bumping up the rent.
Owning a home allows you to build equity with an asset that appreciates over time.
Homeowners can benefit from tax credits and deductions, including the mortgage interest deduction.
You’re free to redecorate and renovate the property since you’re the owner.
Cons of Owning:
Costs for home maintenance and repairs, property taxes and homeowners’ insurance can add up quickly.
Upfront costs like closing costs and down payments can be expensive.
Owning a home means committing to staying in one place for a while. This offers less flexibility and makes it harder to relocate.
Though you don’t have to worry about your landlord increasing your rent, property taxes can go up.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m 65 and Have Never Owned a Home — Here’s Why