buy or invest

[audreycg]

Hi there, I am completely new to this forum, so nice to meet everyone. I am desperately looking for advice. I am a 50yo mother to 2 adult children, both of whom live with me. My son is 24 and working and going to school. My 20yo daughter was born with medical and developmental disabilities, and is currently taking classes on a sporadic basis and not really working (walks a neighbors dog daily for 50.00/wk). Bc of these disabilities she may not ever be able to really work or even live on her own. Its not definite, but likely. We are in the process of trying to get disability for her, but that is probably pretty far down the road, if ever. Meanwhile, I work and earn approximately 5500.00/mth gross(translates to about 3800/mth, after taxes and 401k contribution). My son contributes 500.00/mth. I have about 12K in a 401k plan, and approximately 212K in an investment account. I pay 2000.00/mth in rent, and have no other bills really, other than utilities and groceries every month. No car payment or debt. My question is should I buy a property or keep the money invested. I live in Los Angeles - crazy expensive. I actually have a good deal with the rent - believe it or not. Its a 2br/2bth in a very nice area of west la/santa monica, and i have looked and looked and cannot find a better deal, especially considering i am about 15 minutes with traffic away from work I do not have this burning desire to own a house, although of course i would love it, especially the yard. What I want is to make sure that I maximize how much I leave for my children, particularly considering my daughters situation. In the long run, is my money going to grow and provide better for my children if i keep it invested or if i buy a house in los angeles. just to make it even more complicated, I am not even sure that I want to stay in los angeles thru to retirement. I am originally from the east coast and would some day love to return, but not until my son finishes school and is ready to move.
I know this is a lot but I cannot seem to get a straight answer - real estate agents tell me buy, investors tell me invest. Thanks in advance for your help

[snafu]

Welcome to SA. At age 50, you must consider these decisions more carefully than those just starting to earn income in regular employment. Since real estate agent's income is all commission based, they would encourage buying to transfer your money to their bank account. While it appears to be the seller who pays the agent...they are using your money.

Likewise, Certified Financial Planners, Investor Brokers and Mutual Fund salesmen are nearly all commission based salesmen/women. They receive a fee from the company they represent and a percentage from the product they sell you. Some have higher commissions than others. The lower range cost products are offered by Vanguard. Some products are of lower risk than others and you need to know the risks.

I don't think home ownership is for everyone. It's true that some housing prices increase over the years but they also lose value. Some districts become more valuable but guess wrong and an area can drop value if schools ratings decrease or nasty crime occurs and people are frightened. If you own, everything, anything that breaks or stops is your problem, your responsibility to fix. Yesterday's newscast featured sink holes! Who can imagine that!

[Jovanny]

Consider your long term goals and make the decision accordingly.