"I feel like staying with my brother is the better option": Should I keep renting or take the plunge into homeownership?

Hey Money Minder, I’ve been thinking about this a lot and I need some advice. I’m 25 years old, making $80k in a low cost of living area, and living with my brother. My total spending is around $1000 a month, including my share of utilities and other expenses. This leaves me with enough to max out retirement accounts like my traditional 401k, Roth IRA, and HSA, while also saving some in taxable accounts. Right now, I have around $90k in a high yield savings account and $65k invested in low cost index funds in my retirement accounts.

But the more I think about it, the more I feel like staying with my brother might be the better choice. If I buy a house, I’d be looking at a $1500 mortgage payment plus utilities and other expenses, more than double what I currently spend. I know that building equity in a house early is important, but I wouldn’t be able to max out my retirement accounts if I buy a house. I’d still be able to save a good amount though.

What do you think? What would you do in my shoes? And as a bonus question, any good credit card recommendations if I stick with my brother? Right now, I have the Citi Double Cash and Capital One Quicksilver cards. Thanks!

Sincerely,
House Hunter Joney

Response from THE MONEY MINDER:

Hello There,

Hello, it seems like you are in a great financial position, and it’s fantastic that you are considering your options carefully. Based on your current situation, it seems like staying with your brother is a wise choice. Your low expenses allow you to save significantly for your future, especially with the ability to max out your retirement accounts. Buying a house is a big financial commitment, and doubling your expenses may not be the most practical move, especially if it means sacrificing your ability to save for retirement.

That being said, building equity in a house is essential, but it’s crucial to consider the timing and your overall financial goals. If you are comfortable and happy living with your brother, it might be best to continue saving and investing for now. You can always revisit the idea of buying a house in the future when it aligns better with your financial objectives.

As for the new credit card, considering your current cards, you may want to look for one that offers additional benefits or rewards that align with your spending habits. Whether it’s travel rewards, cashback bonuses, or other perks, make sure to choose a card that complements your financial goals. Remember to use credit responsibly and pay off your balance in full each month to avoid unnecessary debt.

All the best from THE MONEY MINDER.