Could you use a substantial tax deduction from your 2006 income?

 

 

Buy a home.

 

There's still time to buy a home before the end of the year.  There are more properties to choose from than any time in recent years, and many are selling for close to 2004 prices.  Mortgage rates are still low; the economic news is good:  Wall Street is hiring; the Dow is at record levels; gas prices are down. 

 

Recent studies are predicting that housing prices will probably begin to rise again early next year.  This would be consistent with historical trends in home values which, like stock values, increase over time, with temporary dips being normal and major crashes being unusual.

 

To take advantage of deducting your closing costs from your 2006 income, you'll have to hurry.  From contract signing to closing generally takes from 60-90 days, and the process moves slower during the 4th quarter of the year (so many holidays).  I can, however, recommend lenders, inspectors and attorneys who can shepherd deals through to closing quickly.

 

If you can close before in December, your first mortgage payment probably won't be due until February.

 

If your family wants to give you a perfect holiday gift, they can help with your purchase.