FLOURISHING AFTER 50: I’m 57 and divorced. Should I buy a home in an area I don’t like, or rent where I want?

Dear Vanessa, 

I’m 57 and divorced, and I’m now trying to figure out what to do with my half of the settlement. I’ve always lived in a house, but with property prices the way they are, I’ll probably have to settle for an apartment in a location I don’t really like.

I’m wondering if I should skip buying altogether and rent instead. I’d have the freedom to live somewhere I want and could invest the rest of my settlement to grow my wealth. But I also worry about not having the security of owning a home as I get older.

I never thought I’d be in this position, and I’m finding it hard to decide what’s best. What do you think?

Thanks,

Greg.

Hi Greg,

Your situation is a challenging one, and it’s great that you’re taking the time to consider your options carefully. Big financial decisions made during stressful times – what I call financial flashpoints – often aren’t the best ones in the long term. That’s why I’d encourage you to avoid rushing into anything.

Renting for a while could be a smart interim step. It gives you the breathing space to explore your options without locking yourself into a decision you might regret. You can take the time to figure out what feels right – whether that’s buying a home for security or investing to create more flexibility.

If you’re thinking about buying eventually, it’s essential to secure a competitive mortgage rate when the time comes. Even a small difference in your rate can save you thousands over the life of a loan. My free mortgage rate tracker can help you see what you’re eligible for and shop around for the best deal.

While you’re reflecting on your next steps, don’t forget to consider your superannuation. This could be the perfect time to reassess your retirement strategy. An adviser might suggest topping up your super with part of your settlement or planning how best to draw it down when the time comes.

To help you navigate these decisions, I strongly recommend that you speak to a financial adviser. They can help you think clearly and strategically about your next move. You can access my free service to match with an adviser here.

Taking a pause now could lead to a far better outcome for your financial future – and give you the clarity to make a plan you feel confident about.

Warm regards,

Vanessa.