Home Buying in 90005>Question Details

Ero, Home Buyer in Arcadia Park Estates,...

Should you buy a home at above 65 years old?

Asked by Ero, Arcadia Park Estates, Fort Worth, TX Sun Jan 16, 2011

My parents are in over 67 years old and have been renting the last 20years. However now they want to buy a house. They live good life right now, travel twice a year to Europe or Africa. If the buy a house they will have put big down payment and their monthly payment will increase from what they are paying for rent. Also I'm afraid that their life quality will diminish.
1, What is the visdom of buying a house when 65 and above .
2, should they buy or continue rent

Help the community by answering this question:

Answers

11
Buying a home, at any age, is as much about self fulfillment as it is about owning property. Your parents need to evaluate the pros and cons of owning property. They may want to speak to their financial advisor regarding how this could affect their income, expenses, tax liability, and lifestyle.

Some of the pros, which do not involve the dollars and cents arguments. You own it, you can make it your own, express yourself in the decor and landscaping, which you cannot do in a rental. You have a home to will to your children or charity. The money you spend each month actual goes to something you own, not something someone else owns. There is a sense of satisfaction that comes from owning your home.

Some of the cons. You have to fix the toilet yourself when it breaks. You have to pay to maintain the property, in general. Depending on how much house you buy, your actual monthly expenditures may increase. If the value of the property goes down, well we are seeing that right now, you might not be able to sell when you want to sell, assuming you want to sell.

As you can see, owning a home is not just about money. And if your parents have dreamed of buying a home and now want to fulfill that dream, this is a good time to buy. Prices are low, finance costs are low, and there is quite a bit of inventory on the market.

If you think they have not thought this through, feel free to have them call me. I have a short list of questions that will help them determine if this is the right decision for them at this time. Then you just have to trust that they are making an informed decision and support them in their final decision. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
SSG Pro®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
424-2HELP12 (424-243-5712)
myrealestateanswers@gmail.com
http://shel-lee.listingbook.com
1 vote Thank Flag Link Sun Jan 16, 2011
Hi Ero,

I cannot make the decision if your parent to continue to rent or buy. They should consult with their financial adviser what is financially to their advantage. What is their motivation for purchasing a home now? They may want pride of home ownership. Homes are pricey in Los Angeles, CA. Would the monthly home purchase expenses equal or far out weigh the benefits of renting. There are a lot of things to consider. As a family pencil out:
- Financial advisers recommendations.
- Rental expenses compared to home ownership expenses.
- The amount of the down payment
- Motivation for homeowners
- Tax benefits of homeowner
- Will life quality and financial rewards of home ownership increase of diminish lifestyle.

Things your parents should consider Good Luck.

Gail Mercedes Cole
EXP Realty
853.9933
0 votes Thank Flag Link Sun Aug 18, 2013
Sometimes when you travel and seen "the world", you tend to want to put down roots and have a place to call all your own. So if this is the new adventure your parents are looking for, then why not.

Of, course before they buy be sure to really evaluate the risks and benefits. A professional financial planner or a CPA would be a great start to get advice.

Good Luck!
0 votes Thank Flag Link Fri Feb 4, 2011
You need confer with CPA for all the tax advantages of owning a home which might = to same amount they are paying in rent.

Have you consider as their family member purchase a home on their behalf allow them rent from you than making a stranger richer ? You receive annual tax benefits ?

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Jan 18, 2011
ERO: Your parents need to consult with a mortgage planner who can better assist them. Without knowing what income your parents have, what their credit score is, what down payment money they have, and what kind of mortgage they can qualify for, it's not possible to look at the whole picture.
~~~
0 votes Thank Flag Link Tue Jan 18, 2011
If they have a little over 40% down, they could acquire a reverse mortgage, within loan limit guidelines, without making any mortgage payments in the future. Might want to check that out. .... Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Mon Jan 17, 2011
Hi Ero,

I applaud your parent’s adventurous spirit!

In my opinion, this is a decision between want and need that should be arrived at via consultation with both a financial and tax advisor to review all the pros & cons of such a financial decision. While it's the "American Dream" for one to own their own home, the harsh reality is Medical, Disability, and/or Life insurance may be a more prudent financial move in the long-run based on current financial position (depth/type of income sources) and personal health history.

Best, Steve
0 votes Thank Flag Link Sun Jan 16, 2011
why not? They likely have a good many years left, so why should they not enjoy their own home instead of paying someone else's morgage.
0 votes Thank Flag Link Sun Jan 16, 2011
They're ONLY 67, my aunt is 90 something & still lives in her house in Tarzana. It's a good time to buy since prices have fallen & interest rates are still SO LOW. Someday you'll inherit the house!

You can search in the MLS just like I do at the link below, see what's available in the neighborhood they might like, see pictures too. Email me directly if you have any questions or concerns.

EmilyKnell1@yahoo.com
562-430-3053 cell
Realtor Since 1996
0 votes Thank Flag Link Sun Jan 16, 2011
Hello Ero,
If they can swing the payments then having a home vs. renting will allow them to not worry if rents go up. It will give them a home that they can pay off and not worry (provided their mortgage is fixed) about the worries of increasing rents.

Monique Carrabba
The Carrabba Group
Keller Wiliams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Sun Jan 16, 2011
That is a personal decision. There are many advantages to buying a home and renting, your parents just need to be sure that purchasing a home is what they really want to do. Factors such as fixed income, mainaining the property, and other issues will need to be taken into consideration when making their decision.
0 votes Thank Flag Link Sun Jan 16, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer