How do you decide whether to save for retirement (which is tax-deferred) or save for a down payment on a home?

Question

Buying a home, even with the downturn in the market, is still the most successful way to invest money. But I don't make enough money to both save for much of a down payment and still put much money aside for retirement. So how do I choose where to put what money I don't need to live on?

Answer 1

I would save to buy a house first.  First, you'll get a place to live. Second, your interest payment is tax deductible.  You might get more on tax return then save up those for retirement.  Maintaining a house could be costly, shop and buy a house carefully to make sure you won't end up spending all your money trying to fix up the house.  I mean that a house inspection before buying is very important.

Answer 2

Forget the "successful investment" idea.  THere will be a time in your life when you know that you don't want to rent any more.  Not that renting is bad.  It's fine.  But when it's time to own, you will know it.  I don't hear that in your question, so i'm guessing that you will do best by saving for retirement.  .