You are here:

Buying or Selling a Home/Should I buy a condo, mobile home at age 62 before I retire

Advertisement


Question
Hello Jessica. Thanks for taking time to answer my question.

Essentially, I am turning age 62 in a few months. I am working full time at an ESOP owned company and I am fully vested in the profit sharing. I presently rent for $1010 a month and have rented my entire life.

Now I am thinking I need to live cheaply since I might retire in a few years or be forced out of my job due to restructuring.

I only have Social Security and my profit sharing that will support me, and/or part time work.

Is it wise to buy a condo now? Condo prices in my area - Chicago, IL - are way down in price. And I thought my monthly housing cost would be much less than renting.

Or, is it wise to buy a mobile home instead?

Or, simply remain a renter?

My intention is simply to have a much lower housing cost so I can live on my fixed income.

Thanks for your help.

Answer
Hi Bob;
I am not a fan of mobile homes since they depreciate too much and too quickly. In addition; there are monthly costs associated with living in a mobile home park (if that is what you are considering.) You are better off owning a conventionally constructed home.  Condos are probably a better choice but you will need to look into the homeowner's dues and how much they can go up each year.  If you are living on a fixed income and if the fees go up you could be forced out of your home. If you feel confident that the monthly condo fees are easily covered by your profit sharing and social security then that is the way to go.  Home ownership is always a little more costly since there are unknowns involved. There is yearly maintenance, and costs for replacing things, repairing things, and updating things. However, when you go to sell, you USUALLY recover those costs and make a profit.  (That is not always the case though--as we have witnessed over the past few years of economic downturn.)  If the condo costs are low right now, it makes sense to buy one and pay less than your monthly rent.  If you can save money on a monthly basis then when you retire you will have a nest egg to cover potential fee increases.  

You are lucky that it is a good time to buy.  We have experienced the real estate lows and are now seeing things taking an upward swing.  Act quickly while interest rates are low and prices are still low as well.  Best wishes.

Jessica Bryan

Buying or Selling a Home

All Answers


Answers by Expert:


Ask Experts

Volunteer


Jessica Bryan

Expertise

buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.

Experience

Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.

©2016 About.com. All rights reserved.