In the depression the stock market lost 90% of its value whereas property values only lost 34%. In the 1970s there was a recession and a serious bear market yet housing values increased 10% a year. The fixed rate mortgage is a hedge against inflation and the interest you pay on the loan is tax deductible, saving you a lot on taxes from year to year.

That is proving to be true in our case. We had a large savings and paid rent. Our taxes were punishing and we constantly felt poor. After buying our condo, however, we discovered that our tax deductions will be such that now we'll own a much larger space while keeping our expenses at about the same level.

Different factors affect your decision to buy a home. Taxes are just one of them. But most of all you have really want your own place and the responsibility that comes with it. That will get you through the ups and downs that are sure to come your way.

Here is how you know you're ready to invest in a home:

1. You have a good, steady income.
2. You're in a high enough tax bracket that you'll benefit from the mortgage interest tax deduction.
3. You don't expect to be transferred or are willing to refuse a transfer.
4. You're willing to commit to ongoing monthly payments on a mortgage loan.

The next question is what can you afford?

Here's a link to a site with a mortgage calculator: Homeadvisor. Try it out! You may soon find that you too are ready to buy!

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