Four Reasons to Buy When You Downsize for Retirement

Buying your retirement home, rather than renting it, grants you stability, control, possible tax benefits and a very handy inflation hedge.

An older couple smile at each other as they drink coffee while taking a break from painting their bedroom.
(Image credit: Getty Images)

I grew up in a Red Sox household. The mere sight of the Yankees’ logo caused a gag reflex all the way until my early 30s, when I realized just how ridiculous this was. People tend to have similar feelings about renting vs owning a home. They pick a side and stick with it. Logic be damned.

For retirees, there are many more fans of owning than there are of renting, with Vanguard estimating that 80% of retirees are homeowners. Therefore, my previous article Four Reasons to Rent When You Downsize for Retirement was what Gen Z might call “a hot take.” Today, I’ll side with the majority and give you the four reasons it may make sense to buy again in retirement.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.