Our Atlanta Independent
Senior Living Communities:
Atlanta Senior Living Resources
Which is Smarter: Renting or Buying?
One of the most frequently asked questions that clients of Parc Communities pose to us is "Why can’t Mom purchase her apartment home instead of renting?” To best address this issue, we lead our Baby Boomer clients through a step-by-step explanation which not only addresses the Parc Communities perspective on this issue but also attempts to explain all of the practical reasons why ownership of real estate is seldom desirable for people who are seeking a hospitality type of lifestyle.
Most residents of Parc Communities move into our properties from a home, townhome, or condominium. Our depression-era residents have typically enjoyed home ownership for most of their lives. The majority have free and clear ownership and have enjoyed an outstanding investment return on their homes. Their natural inclination is to want to continue some form of ownership. What our Baby Boomer client must understand and effectively communicate to his/her parent are the realities of ownership. Because Parc Communities is dedicated to providing a carefree lifestyle for its residents, we believe that a rental program is the best way in which to relieve our residents of all of the anxiety that is associated with ownership. Since you and your Mom or Dad have been dealing with the everyday issues of home ownership for many years, you may not recognize the subtle causes of this anxiety. The following are a number of relevant issues.
In most instances, your Mom will have owned her home for many years. As a hard asset, it may have begun to significantly deteriorate. Dealing with the issues of deferred maintenance and preservation of that asset will require more time and money as each year passes. Rather than addressing the problems as they arise, your loved one will oftentimes quietly obsess over the matter while doing nothing about it. He or she is vulnerable to unscrupulous contractors and may be unwilling to tackle a problem, even when it might involve a life-safety issue.
In a Parc community, all physical maintenance is provided by Parc Communities, at no charge to resident
Even if your Mom owns her home free and clear, she will still be responsible for periodic payments for taxes and insurance. In most instances, she will not have the inclination to challenge rising tax assessments and insurance increases. Although she may be greatly frustrated by the escalating costs, she will simply make payments and endure the anxiety associated therewith.
In a Parc community, all taxes and insurance are paid by Parc Communities.
If she owns her own home, your Mom is responsible for monthly payments of water and sewer, pest control, landscape maintenance, trash disposal, telephone, and utilities. Just keeping up with all of these bills will oftentimes be a burden.
In a Parc community, the only separate bills that your Mom will pay are her telephone and cable. The invoice for electricity will be included along with her monthly rental invoice. Most other monthly costs are included in her rent.
Occasionally, the investment consideration itself is the most important question that you and your loved one may be discussing. To better address this issue, it is critical that you understand the reasons behind alternative capital structures that are generally available for senior communities.