Why should I buy a home?

Home ownership is one of the key components of the American Dream and a universal symbol of financial stability. You may be shelling out more money per month for a great apartment, but it’s still not the same as owning a home, which is associated with stability, security, and even wealth. The National Association of Realtors_ (NAR) says first-time home buyers generally buy homes because they are (in order of importance):

1. Tired of paying rent to landlords
2. Ready to tap the tax advantages associated with home ownership
3. In need of more living space, be it indoor, outdoor, or both Of course, home ownership brings with it both positives and negatives that must be considered, particularly if this is your first time out.

Despite the challenges it presents, home ownership is undeniably one of the most sought-after dreams that Americans pursue on a daily basis.
If you’re not sure whether home ownership is the right choice for you, take out a piece of paper, draw a line vertically down the middle of it, and write the words ‘‘pros’’ and ‘‘cons’’ as headers on each column. Then, take your time comparing the good and the bad aspects of your current living situation against the pros and cons of home ownership. If things are too heavily weighted in either column, it could be time to buy a home. For starters, right now you’re probably putting money in your landlord’s pocket—and helping him pay down his own mortgage—without reaping any of the benefits of that money. You’re not building equity in a home, and you probably have little or no say in the permanent decor, landscaping, and repairs on your home, even though you live there. If the home were yours, you’d bemakingmodifications (some of which can add value to the property), enjoying your own wall paint colors, and tapping one of the best tax advantages that Uncle Sam affords Americans: deducting points paid on a home purchase, mortgage interest paid (which can be a pretty hefty sum, particularly during your first few years as an owner), and property taxes. And because properties nearly always appreciate in value, you would also be building a nest egg for yourself that can be tapped when needed (in the form of, say, a home equity line of credit) or saved for future use.
As NAR discovered in its survey, people also buy homes because their lifestyles change and families grow, which means the need for larger yards, more bathrooms, or extra bedrooms. Those who do go in search of homes often find a much better selection than their renting counterparts, since single-family homes, town homes, condominiums, and co-ops come in all shapes and sizes. Other reasons for purchasing a home include the ability to build or improve a credit history, an investment in your future, and more control of your surroundings.