Reply to If I choose to never own, will I regret it once I hit retirement?

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[quote=Anonymous]$ 10K on property taxes is a lot, even in this area.  Our house is valued around $600K and our property taxes are about $6K.  So, yes we will still have that and assume another $4K for upkeep per year (which may be high, but I like to be conservative on finances).

The cost of renting a similar home would be $3000+/mo.  So that's $36K per year.  If you had your house paid off for retirement, you'd be saving $26K/year in rent.   Let's assume you're paying about $3K/month in rent now -- you're not getting anything in the long term for that.  If you bought a house, it's hard to say what your mortgage would be because it depends on what you put down.  But, I have to think you are far better off in retirement if you have a house paid off.

I think you're making a big mistake.  If you can afford it, maybe you should invest in a condo or small house that you can rent out now (while you continue to live in your current rental).  Before you retire, you could move into the house you own (and have been renting out) for a year or two and then the increase in equity becomes tax-free as your personal residence (it is no longer taxed as investment income) when you sell and move to your final retirement residence.  It's a perfectly legal way to convert investment property gains to tax-free income.[/quote]

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