Anonymous
Anonymous asked in Business & FinancePersonal Finance · 3 weeks ago

Is it wrong to save money for retirement only but not buy a house? ?

I’m 35 single and so far have saved $30k. My mom wants me to use all my savings to put a down payment on a house or apartment. But I don’t want to do so because firstly I don’t want to work for the rest of my life.  I want to use this savings to potentially live my life to the fullest as younger as possible and giving this money on a down payment will put me on zero. And I don’t mind living on rent when I retire I can find a cheaper place. 

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  • 3 weeks ago

    Look at it this way; buying a house simply transfers your savings from one asset (the stock market) to another (bricks and mortar).  It does not mean you have to live there.  Choose a place in the centre of town so that it will be easy to rent out so that you can put in a tenant who will pay enough rent to cover the mortgage.  Then quietly let the mortgage gradually be paid off by the rent.  In the meantime, go back to saving so that you build your IRA.

    When the moment comes for you to retire you can do one of three things:

    - You can sell your house and pay cash for something perfect for you. 

    - You can move into the house and live rent free. 

    - You can continue to rent out the house and use the rental stream to fund some of your living costs.

    I still have the house I bought at the age of 28.  

  • Anonymous
    3 weeks ago

    That 30k ain’t yo mama’s! Do you boo! 

    (That $$$ is going to turn itself into a bundle if you keep saving-like 2 houses worth).

    I’m done here.

  • 3 weeks ago

    Yes. A home ownership is a major cornerstone of retirement. In 10 years your house payment will be the same, but rents will be much higher. The difference is the money you use to enjoy life. P S A down payment IS NOT "giving money away." It is always yours, in the form of equity, which you get back when you sell.

    Source(s): my "rent" is now only $500 a month
  • 3 weeks ago

    Of course not. If you don't want to buy a house, you should not be pressured into it. There's nothing wrong with renting.

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  • Judith
    Lv 7
    3 weeks ago

    No it isn't wrong but I think it is very short-sighted of you - and you sound like a dreamer - not well-grounded in reality.  Living expenses keep going up; especially rent.  You might also be surprised that, as you age, you will find that more and more of your income will be going toward health care.

    I am in my early 70s and never bought a house.  I wish that I had.  My rent is currently $900 and in 3 years it will be $1000.  I've already moved to a smaller apartment.  My friends who own their own homes have more money to spend on those things which make life more enjoyable; e.g. vacations.  It gives them more freedom to do what they like doing.  $30K at age 35 isn't promising.

    A house is an investment and, if you take care of it, will increase in value far more than any interest you could earn from savings.  Pay it off and you are living more cheaply, and probably nicely, then anywhere you could rent.  Then, when you retire, you have a nice chunk of change which you can supplement with your low monthly social security benefits.  I say low social security benefits because they use your high 35 years of earnings with which to compute the benefit amount.  Any zero years brings that amount way down.  And since you seem to lack ambition, your earnings aren't going to be that high anyway which means that your SS benefit will be even lower.

  • Judy
    Lv 7
    3 weeks ago

    No, you should only buy a house if YOU want to.

  • Anonymous
    3 weeks ago

    Buying a house can make it easier not to have to work for the rest of your life. Particularly when you pay it off.

    If you only have $30k at 35, I am afraid you may have to work your entire life.

    With a house, even on payments, your payment is fixed whereas rent will always go up. You may not notice it right away but in 5-10-15 years the difference is significant.

  • Anonymous
    3 weeks ago

    I think mom wants her basement back 😉

  • 3 weeks ago

    Rent will always increase, so you will continuously pay more money.  You may be able to find a cheaper place compared to other rentals in your area, but you might be paying twice as much as you are now.

    If you own your house, you will eventually pay it off and really be able to reduce your expenses.

  • .
    Lv 7
    3 weeks ago

    Unless you have a job that requires you frequently move (like an Air Force pilot), it makes more sense to purchase a home.  You get no equity from renting.

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