Housing Costs Skyrocket

by Robert
(Illinois)

I would like to ask for advice. I'm 70, single, male, family is all dead, and I'm renting an apartment. My apartment building was just sold to a new owner, and I think they will raise my rent by a whole lot, based on what I see rents in their other buildings going for.

My question is, do I cough up a few hundred dollars more for my monthly rent when my lease comes due (which would be most of my social security check)? Or do I move to a cheaper location (and I have found a cheaper area but it's out of state), or do I buy a condo to have my own place?

If I move out of state to a cheaper location, then I'm starting over which is not scary, but overwhelming, ok, maybe scary. I'd have to get new doctors, make new friends (and most of my friends are dead), get a new driver's license, and more.

But if I can't afford to live in my present apartment anymore, I don't see where I have a choice.

The other thing I could do is buy a condo. It's not throwing money out of the window like renting.

So if anyone has advice for me, I'd really appreciate it.

Thanks!

Comments for Housing Costs Skyrocket

Click here to add your own comments

Thanks
by: Anonymous

Thanks for the advice everyone. There's a lot to think about.

With the high cost of living these days and rents skyrocketing. It doesn't make sense to rent anymore except for the fact that I have no responsibilities except to mail my rent check. And I'm free to move anytime.

I have been looking for a condo in my big city area. I found a few nice condos, but there is no parking. And you don't get much space for the cost of the condo. So I have to keep looking.

I hope inflation will end soon and prices get back to some sense of normalcy.

Anybody have any thoughts on a mobile home?

Thanks again!
Buy a condo
by: Jane/Indiana

If you can afford it, buy the condo. If you look for the right place, your mortgage will be less than rent and will not go up at the whim of someone else. If you can pay cash or a large down payment, even better. But I strongly suggest you get out of Illinois, the land of high taxes.

Big Question-Big Decision
by: Linda/FL

You are asking yourself a big question which means making a big decision. And it is one all of us will ask ourselves as time marches on. What to do?

I understand the struggle as I retired one year ago and initially my plan was to make a move to a small town where I hadn't decided yet. However, with Covid and the increased price of homes here we remain.

I have thought about what to do, when to do, and IF to do and therefore can relate to your dilemma.

I have learned that a decision this big is not easily made and that it is best to just be with what is until you have some clarity.

It does sound like you could go with the increase rent if that occurs. And, then listen to your heart regarding where you want to be and if you have the "heart" for all that a major move involves.

I'd love for you to keep us posted as to what you decide and how you made the decision. Until then take care.
Condo life
by: Sally

Condo life Could be a good option for you if you want to stay in the same area. In addition to your mortgage and utilities you would also have a monthly HOA fee. Check into the financials of the HOA as well.

I’ve lived in a condo for 18 yrs and we are now facing an $8,000 assessment for roof replacement.

They all have ByLaws and rules, so be sure to read those over before purchasing as well.
Housing Costs
by: Roxanna

Consider buying a condo in an over 55
Community. Condos in such communities are
Usually much less expensive. These communities
Have lots of activities that one can choose to participate in or not.
Rent or Buy
by: Donna

I would buy the condo. You would not have to worry about rent increases and you would own something instead of paying so much to live in somebody else's property.
Rent Move Buy
by: matt i

Robert my thoughts are is that if you have enough money to purchase a condo -i would consider that--first--i agree at 70 not worth the hassle of starting over again in a new state-finally it would depend how much the rent goes up to force the two above alternatives to have happen. best wishes
Avoid rental increases - buy that condo
by: Bernard Kelly - Geelong

Hello Robert in Illinois

Given that you're still a youngster at just age 70, and you appear to be in good health, so the probability is that you will live until age 93 (which is the average - 50% of us will live longer).

If you continue to rent, you can expect many rental increases over the years.

So your best route is to buy that condo, and then set about blending in to your new community. You're certainly young enough!

kind regards

Bernard Kelly - Australia
Things to consider
by: Ben, KY

Well, having lived in a condo here are a few points to consider. There will be condo fees which will go up periodically. Then, if ANY of the condos on the same property need for example new roofs, this cost will be shared usually. Been there, done that.

Suppose you move to the cheaper area and it gets bought by developers looking to increase rents. Lots of that around here. From cheap to outrageous...but with the latest appliances,etc.

I'd stick right where you are especially if you have some good friends in that area.

Just my 2 cents.
Good Luck.
Ben
Housing
by: Michigan

I suggest you check out senior housing options in your area ~ many have income based rents. Senior housing generally has apartments, condo, or villas.

I too am exploring all the options as many offer activity centers and the outside maintenance is part of your HOA. Good luck🙂
Buy the condo…pay yourself
by: Nui

That was exactly the problem I wanted to avoid: how to avoid rent increases when I was on a fixed income. Because you can’t control what landlords do.

I bought a condo, which is essentially paying myself. My costs are fixed and no one can evict me. Plus, if and when I have to move to a nursing home, I can sell, recover everything I put into it and probably make a profit.

My personal opinion is to buy a condo if you can afford it. I don’t know about where you live, but here it is much cheaper to buy than to rent.
Rent vs buying a condo
by: Steven

Hi venerable renter,

I would talk to your new landlord and possibly see if he can give you a break in rent given your financial situation.

You are still young.

I am 72 so try to give yourself a little slack with the worry if you if you can.

I wish you well!
Steven
Consider your options
by: Michael - Upstate NY for the summer!

Robert - the first question you have to ask yourself is: where do I want to live? Are you familiar with the new location you have identified? Have you spent time there in the past - perhaps on a vacation?

I retired six years ago. I purchased a home in Florida. My husband and I spent some time on vacation in the area where we chose to buy. We bought a house as opposed to renting first, and it worked out for us. We didn't have any problems meeting people and "fitting in."

I found the hardest part was finding dentists and doctors. However, that can even be a challenge in your present location as doctors retire.

If you do choose to move to the new area, you might want to rent for a year until you are 100% sure that is where you want to stay. You could also move to a neighborhood where there are people of a similar age or share hobbies and interests that are similar to yours.

If you decide to stay in your present location, start to look for a small home or condo that you can afford. The purchase price will help you stabilize your monthly housing costs.

Do keep in mind that condo fees and real estate taxes can increase over time. When buying a condo, be sure to do your research and review the financial documents for the HOA.

Ask friends or acquaintances for the name of a real estate professional that you can trust.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Housing.