Last night was “girl’s night out” at my house.  We are a small group and we try to get together every couple of months. Our group is interesting and we always have a great time catching up with each other’s lives. 

One of the “girls” has recently sold her home and is living with a friend in Pasadena.  And the question of the day is should she buy a home now or buy a home later; what is going on with the real estate market?

Her situation:  She is comfortable at her friend’s home and the two of them get along well and enjoy each other’s company.  There is plenty of room. She is new to living in Pasadena and does enjoy it.  She thinks she knows what type of home and what location she prefers.  She will need a tax write off to offset her income, but of course has the benefit of the payments and taxes paid on the home she sold for this year’s taxes.

The reality:  She likes where she is staying, she has no urgent need to buy (except for the tax write off).  So it is all a matter of timing.  It doesn’t appear that interest rates will dramatically increase in the near future.  In the short term, it is doubtful that we are going to see a “run up in escalating home values”.

The facts: A tax write off next year will be beneficial. She does want to buy something sooner or later.

My advice:  Think of your home as your refuge, your haven, a place to welcome friends and family.  Buy the home when you are looking for the value of your home to simply be the value of any enhancement to your lifestyle. Once in a home, it of course can be personalized to your taste and made comfortable for they way you live and entertain.  Homeowners have no need to worry about rent increases or notices to vacate. 

Shocking advice? Think of a home as your haven and not an investment – this is the real reason to purchase a home. Additional benefits are that over time, real estate has always appreciated and of course you enjoy the benefit of the tax deduction.