I'm 62 and in a similar position to Trudi. 6 months ago I bought a modest one bedroom apartment with a plan to do exactly what Paul has advised - am rather relieved he suggested the same. It was my ever increasing rent and the realisation that I would likely be renting in retirement that made me act - our system is set up for home owners and rental assistance doesn't make up the difference. I think I made the right move, even though home ownership costs more now, the mortgage is less stress than the fear of homelessness in old age (our population is growing so rents can only keep growing given the lack of new builds)

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I'm confused about the projected superannuation balance in Paul's response. When I put all the details in the money smart super calculator, the projected super balance on retirement is $479,000! Much less than suggested

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First of all, my condolences for the passing of your mother. It's nice that you are reaching out for financial advice and while I think home ownership is very important, I'm relieved that you have a stable renting situation. Rent money is not dead money, it is the price of having a roof over your head and that is a precious commodity these days. My concern is the $7,000 in savings...With uncertainty of rate rises and inflation always on the economic forefront, I would advise having a more robust savings account before jumping into home ownership. While you spend some time researching what/where you would like to live in permanently, open up a high interest savings account and add a generous amount in each pay. Wishing you success!

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lol this comment has such a weird vibe to it

she didn't ask you mandy, she asked paul

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I did much the same after I retired. I was paying ever increasing rent on a unit in Melbourne and was worried that I had no security of tenure. I bought my own modest home on a small block in Bendigo for roughly the same price as a one to two bedroom unit in Carlton. I miss Melbourne and the flexibility of renting but not the insecurity of tenure. I really liked the place and didn't need a car as I was close to public transport. As often happens, my landlord wouldn't pay for essential repairs until forced by the authorities. Moving to Bendigo is a big adjustment, but I can't be kicked out, I have made a lovely garden, but I now have the added expense of running a small second hand car, and have had to switch to a more expensive telco because of the poor internet and phone connectivity here. I felt far more alive in Melbourne and have had regrets about buying in Bendigo. I often think I should have bought a small unit in Melbourne but that also has legs on it like noisy or inconsiderate neighbours e.g. smokers on balconies that mean you need to keep your balcony door and windows closed in the really hot weather. Body Corporate can also be a problem in terms of insufficient money in the Sinking Fund which can result in pretty hefty Special Levies to cover big ticket building maintenance costs such as new roof, window frames etc if in an older building. Some Owners Corporations are too short sighted to realise that they should slowly increase Body Corporate fees to cover such contingencies. I've seen owners hit with such charges and having no means with which to pay the Special Levies. A pretty sad outcome for an elderly age pensioner. So keep that in mind if you look to buy a unit. Body Corporate fees never decrease, and by rights, should increase year on year. Make sure you carefully check the Body Corporate records, and if you buy in, set aside a fortnightly amount to cover any possible extra costs over and above the Body Corporate fees. Make sure you attend the meetings so you know what's going on. Avoid blocks with lifts, pools, spas, gym facilities as these are big ticket, high cost maintenance items. I'm a bit off subject here but I think better buy outright or with a modest mortgage in retirement without overstretching. Be it ever so humble. Do your research. Getting a rental becomes more difficult as you get older and retire. There's a lot of competition out there. I didn't want to face the prospect of moving when in my eighties.

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