"bo peep" <cowartmisc1[at]yahoo.com> wrote in message
news:1139500640.682504.247620[at]o13g2000cwo.googlegroups.com...

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But he might fall in the upper tail of the expectancy curve and live 20
years, or 25 years, and by that time his rent could have quadrupled, or
worse. Then, again, there are problems associated with renting that should
be compared with the hassles associated with home maintenance: Change in
ownership of the property, condo conversion, noisy neighbors, rents going
sky high suddenly, need to move once or twice, etc. All decisions involve
risks, and I guess it is for the individual to decide what is most
comfortable for him.

"Dave Dodson" <dave_and_darla[at]Juno.com> wrote in message
news:1139504217.570447.318950[at]g47g2000cwa.googlegroups.com...

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I think in making these comparisons of one financial decision with another,
you have to consider not only what is happening here and now, but also what
may happen in the more distant future. Big changes can happen in many areas.
It seems to me that home ownership gives protection against a range of
undesirable happenings to a better degree than other possible decisions, but
again there is some risk either way and the individual must decide.

Don wrote:
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I don't see how you can say that with property taxes in many places
increasing much faster than the rate of inflation.

Dave

The OP's age expectancy at age 73 is 10.27 years. So, if his rent
doubled to $1,400 per month, it would represent about 34% of his income
at that time, which is a reasonable amount, IMHO.

I used the life expectancy table at
http://www.annuityadvantage.com/lifeexpectancy.htm

John Cowart

"Nelliot" <Nelliot333[at]aol.com> wrote in message
news:1139343421.419659.280000[at]g43g2000cwa.googlegroups.com...
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One thing to consider is that owning would protect you from possible future
inflation. The $700 per month for rent could double over the next 10 years,
who knows? Many of the calculations you see comparing the cost of paying a
mortgage vs renting do not allow for the possibility that it may cost a lot
more to rent in the future. The peace of mind coming from knowing your
living arrangements are secure could outweigh the hassle of maintenance,
etc.

At your age ( and mine) I would recommend renting. You don't have upkeep
expense, you can always look for a less expensive home to rent, your tax
savings is not much for mortgage interest, you don't have to worry about
upkeep. Peace of mind at our age is worth more than money in my opinion.
"Nelliot" <Nelliot333[at]aol.com> wrote in message
news:1139343421.419659.280000[at]g43g2000cwa.googlegroups.com...
- quote -

This question involves a financial calculation and a lifestyle choice.


The financial calculation: Every thousand dollars you borrow at 6%
interest for 30 years will cost you $6.44 per month in principal and
interest. A $100,000 property that you put 20% down on would thus cost
you $515 per month. Add property taxes, insurance, condo fees if you go
that route, and any utilities that are included in your current rent,
and you probably are getting close to that $700. Of the total, $4,800
would be interest and perhaps $1,000 would be property taxes. These
count as deductions if you choose to itemize. If I read the tax
instructions correctly, the standard deduction for single over 65 is
$7,500, so unless you have other itemizable deductions that will put
your total over the standard deduction, you would get no tax relief.

You can do these calculations for any property you might consider.

Dave

Hi. How much spare cach do you have laying around?
You'd have to put down 10-20%... If you have the down payment,
without hurting your emergency needs, maybe.
The benefit is that you will start paying yourself that
$700 instead of burning it. However, depending on how
much your new home costs, a lot might initially go to
interest... Note that you would get a tax refund from your
interest payments... Get a fixed-rate mortgage. However,
if your quality of life or financial state will hurt by the downpayment
and buying furniture and paying property tax, etc, don't...
Joe

At age 73, renting at $700 a month, no bills, income of $50K+ would I
be smarter to purchase a condo/house (for growth) or sit tight? .