I own and lived in a condo apt. and have no mortgage on it and moved (out of state) and rent it out. I am supported by the rental income as well as still earning a modest income. I want to retire in a year and considering buying a 2BR condo here in Hawaii and could put down 35-40% down. It would be my Primary residence, and I would hope to eventually rent it out for short term vacationers (i.e, 2 weeks or a month) when I travel. I have significant savings and inheritance, but would it be worth buying and having a mortgage (& assoc. fees) for about 15-20yrs.? Are there any special rates or tax advantages for our age bracket?

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    I don't know what your family situation is like, but if you plan to leave your property to your family, I would make sure they can pay off your mortgage with the money you leave them. It should be common sense for a lot of people, but it is something to keep in mind. Otherwise I wouldn't think having a mortgage would hurt, but the quicker you pay it off, the more money you save in the long-run.
    – dakre18
    Apr 10 '16 at 14:17

would it be worth buying and having a mortgage (& assoc. fees) for about 15-20yrs.?

No, if you can pay the full balance in cash. Paying in full will not only save you money in interest, but limit your risk going into retirement.

If you cannot pay the full balance then it would probably not be wise to take on the mortgage. Consider selling the condo if this is the case.

If you plan on staying there for the rest of your life and you have the funds, I can't see any reason not to pay in full.

  • Another point, what happens if you lose your renters for the condo and can't find new ones, could you still support yourself? OP doesn't state if rental income is their only income, but if that is the case it seems risky to rely on one income stream only. Jun 10 '16 at 16:09

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