Wonder about taking on a mortgage in my 60’s

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  • #86006 Reply

      Can you tell me if I’m not thinking of something? I want to be open to ideas, my original plan is to retire in 3 years at 60. I rent now. do I buy a home that has is a rental property possibility?

      I can look at duplexes, or do I just buy a small condo for me, no rental income, or do I even think bigger, as in a retirement community?

      I’m a healthy, active tri athlete, and do want to travel extensively in my 60’s then help with grand kids in 70’s provided they arrive.

      I will not have any debt, but wonder about taking on a mortgage in my 60’s.

      Renting for next potentilly 20 years seems daunting, but maybe financially a wash. Want to make the last part of my life about health, grandkids, travel.

      Thanks for any thoughts.

      #86007 Reply

        Traveling extensively does not jive with being a landlord, unless you hire an excellent property manager.

        We currently have a rental and plan to sell it once we are retired so we can travel.

        Alternatively, we might move into it and sell our current home. In any case we don’t plan on being landlords once we retire.

        #86008 Reply

          Renting would allow you to move if kids/grands move, pack up everything and store if you travel the world for a year, etc.

          It’s a choice.

          #86009 Reply

            I’m 56, also rent and have decided I am not going to take on a mortgage at this point.

            Also, want to focus on travel rather than property management.

            #86010 Reply

              You have a number of retirement plans but it is not clear if you have financially saved and invested enough to pull this off.

              If your liquid investments are high enough it does not matter if you rent or buy.

              #86011 Reply

                Househack a multi family, get a 3 / 4 unit, live in one, rent the other 2 / 3 out, hire a property manager, have free housing/maybe profitable aka home-base ready to go.

                Thats my plan in Massachusetts (I go there every 2 or 3 months for 3 weeks ish) after I finish this current BRRR in Michigan.

                Don’t forget to take a look at: I am behind in mortgage payments – Any advice would be appreciated

                #86012 Reply

                  Run your numbers. The lifestyle you describe makes land lording more difficult and might make home ownership a bother.

                  I’m 51 and renting for the first time in decades…it’s kind of refreshing to not have a yard to mow or furnace to fix, etc. Renting is travel friendly.

                  #86013 Reply

                    From a financial perspective, getting a mortgage makes sense if you can leverage low interest rates and pay back the debt with cheaper inflated dollars. In today’s high interest rate environment, compounding makes that much less likely to work out in your favor since mortgage rates are significantly higher than historical inflation. The Fed is doing all it can to return inflation to 2%, and mortgage rates are nowhere near that low.

                    In addition, housing prices have escalated so much that future appreciation might be minimal if not stagnant or negative–which could happen as housing supply increases due to new construction or boomers aging out of their homes. That could keep home values from growing, and prevent you from refinancing if rates ever do drop.

                    In summary, unless you can find a deal on a property that’s significantly below market value, I question whether your plan makes financial sense. At this point, money invested in the broad stock market might perform much better than in real estate, and is much less work, especially given your desire to travel. I’d rather focus on enjoying my life in retirement than worry about running a business, which is what rental real estate is.

                    Buy if you want a permanent home base and can do it with cash, but I wouldn’t do it with a mortgage or the intent to make money off rental income.

                    Suggested: Removing my mortgage from my everyday dollar app

                    #86014 Reply

                      A duplex that can carry all or most of the mortgage, adds some inflation proofing with a rent you can rise, and someone to keep an eye on the property when you are out, and about, seeing the world, and when you are old enough to need the help of the kids, an income generator, matter of fact buy two if you can find them, at a good number, live in one manage the three, something the kids can manage in your dotage.

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