In order to start the collection of a monthly Social Security check in the United States, it is not mandatory to be a homeowner, but it is true that being one at the time of retirement can have its advantages. All this will depend on how we have been organized during our working years, so it is not something that changes from one day to the next, but requires previous work.
Be that as it may, there are also disadvantages to getting Social Security payments as your sole source of income and being a homeowner. Regardless of our individual situation, it is undeniable that every situation has its good and bad sides and in this case we are going to see how being a homeowner while collecting the Social Security check can affect in a positive and negative way.
Advantages of being a homeowner and collecting Social Security
Being a homeowner means not having to make mortgage payments because we have finished paying off the mortgage. Not having this expense is the main advantage of being in this situation. However, it is not the only advantage.
To get a clearer idea, let’s look at each advantage of being a homeowner while collecting Social Security:
- No mortgage expenses. If we have mortgage expenses and our retirement payment is not very large, we may have budget problems.
- Peace of mind because no one can kick you out of your home. If we are renting, it is true that due to a series of problems we could end up out of our home. There are situations in which the owner of the flat has evicted the tenants because he needed the flat for himself. As a homeowner, this does not happen to us.
- We can make any changes we need without any worries. From a complete change of decor to improvements to enhance our quality of life, we can do whatever we want with our house.
These are the three main advantages, but each situation is unique and individual. So, a homeowner can find many different advantages to not having to make any more mortgage payments once they start getting Social Security.
Disadvantages of being a homeowner and collecting Social Security
Although it is true that there are many advantages to being a homeowner at the time of applying for retirement, there are also certain disadvantages. Not everything is perfect in every situation. To see this more clearly, we can look at the following list:
- We have to pay for all repairs. If we are renting and something needs repairing, in most cases we won’t have to pay for it, our landlord will. This is not the case if we are a homeowner, as the house is ours.
- We won’t be able to move house easily. It is true that we can always sell the house and move to another place, but it is more complicated if we know that this house is already paid for, so we can’t easily change our surroundings, although we can always travel.
- We will have to pay taxes. As homeowners, we will have to pay all the taxes related to the house we own.
As can be seen, homeowners who collect only the Social Security check also face disadvantages, although they may not be as important as the advantages to be taken into account.