AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

 Hi Scott

I would like your advice on my current financial situation.  I am a 29 year old single male (no wife no kids), who makes slightly over $100,000 per year.  I have $67,000 in a savings account (a high interest online acct (ING direct), and $52,000 in my 401K.  I always contribute the maximum into my 401K, and regularly stash money into my savings account.  I guess you can say, that I enjoy hoarding my money.  LOL!  I have very little debt, only a car payment, apartment rent, and utilities).  I feel pretty good about my finances, and want to continue along a good path for many years to come.   Thus far, I have stayed away from purchasing a home, because I don't see whats so great about it.  I don't want the responsibility and extra costs that come from home ownership.  Am i being totally naive?   There are people who tell me that by renting an apartment, I am simply throwing my money away.   What do you think?   Thanks.  -Chris

Chris,

The answer to this depends a lot on how old you are and where you live. As a 29 year old single male your mobility is probably way more valuable than any possible home appreciation. It's also a near certainty that a future relationship would probably involve selling whatever you bought today. That's not economics, it's just relationship reality.

IF, however, you think you'll stay where you are for a long time and IF you can find a place where the monthly costs are similar to the monthly cost of renting the same place, then might benefit from the tax deductions of ownership and you would certainly benefit (long term) from the fact that part of your shelter cost was a fixed payment monthly mortgage.

The people most likely to benefit from homeownership are young couples. The people least likely to benefit from homeownership are older and single individuals and older couples.

Scott

 Thanks Scott.

That was some good advice.  I'm glad you mentioned my mobility.  Because I am currently living in Phoenix, AZ, but I am planning to move soon.    LOL.   Thanks for the good advice.