Here's an opinion you can take the to bank, my young friend. It will be unpopular because most people's perspective is clouded by emotion when it comes to purchasing a home, especially girlfriends and wives. Others, such as real estate agents and the rest of the industry (i.e. advertisers, home builders, contractors, building supply manufacturers, appliance makers/sellers, HGTV, politicians, mortgage banks/brokers, home owners - of which I am one) that profit when you leverage borrowed money to purchase a home, have a vested interest in keeping you uninformed and misinformed. It's a mine field out there, buddy, help protect yourself with critical thinking.
The "no return" argument is bogus. You're getting shelter and all which comes with it in return for your money spent. It's not that simple of an equation and when you sit down to honestly and comprehensively run the numbers, there are plenty of future unknowns you can never precisely account for. Recognizing what you don't know about the future and accounting for it by building a savings moat is exercising prudence. You nor anyone else knows if you'll indeed have a return when you sell. Don't forget about the maintenance costs that are built-in to your rent, as a homeowner, that's all you, you need to build that into your projections.
You could end up needing to sell in a down market for net less (sale amount less transaction costs) than you paid for it. Ask anyone who has lost their home to foreclosure if they honestly thought they would foreclose before making the purchase. I bet they would all tell you "no." Again, emotional purchasing and imprudent planning for future unknowns.
Making a purchase when rates are low is not reason enough for a "great time to buy" as is often touted by vested interests. All other things being relative, it's financially better to buy when rates are high because high rates puts downward pressure on the price level. If you enter in when rates are at historic lows, they don't have a lot of downward movement room for refinance opportunities in order to lower payments. At a lower price level, you'll need less down payment and will have less downside exposure. Lower prices are always better for the first time buyer, guess who lower prices aren't good for?
Tax breaks are a weak draw. It completely depends on your individual tax situation (which can change) and the government always finds a way to change the rules just when you think you've got the game cornered - ask anyone who remembers when you could itemize and deduct credit card interest. As long it's available, consider that with a lower rate mortgage comes less interest you can potentially itemize - it cuts both ways. Plan for change, it's the only constant you can count on.
Some folks will taut the intangibles of home ownership. There are intangibles to renting as well, just ask any upside down home owner who has the neighbors from hell living next door or ask the guy who got a great job offer further away and needed to move whilst having an upside down mortgage. Or how about the person that wants to make certain improvements or property changes only to find out they're not permitted by their local municpality. People will come up with just about any excuse of so-called intangibles they can to justify their impulse to purchase a home even when they can't truly afford it. Observe how commercials from real estate associations seductively impart the idea that you're not doing well by your family and kids if you don't "own." Or maybe how you haven't "arrived" until you're part of the landed class.
If you're looking in certain hot markets (L.A., S.F., Vegas, Phoenix, Miami, Austin), we're at the top of what is called an echo bubble and this is not the time to buy if you care about price. I urge anyone to bookmark and come back to my post next year to see that I'm right about this. If you're looking in a less populated or less popular part of the country, the price level still makes sense.
In the bubbly hot markets, it's going to come down to being between waiting for a smarter time to buy versus giving into impatience. In the other areas, it's not so clear but you'll at least be more insulated against the next downturn.
