1. Tax breaks. The U.S. Tax Code lets you
deduct the interest you pay on your
mortgage, property taxes you pay, as well
as some of the costs involved in buying
your home.

2. Gains. Over last five years (1998-2002)
national home prices have increased at an
average of 5.4 percent annually. And
while there’s no guarantee of appreciation,
a 2001 study by the National Association
of REALTORS® found that the typical
homeowner has approximately $50,000 of
unrealized gain in a home.

3. Equity. Money paid for rent is money
that you’ll never see again, but mortgage
payments let you build equity ownership
interest in your home.

4. Savings. Building equity in your home
is a ready-made savings plan. And when
you sell, you can generally take up to
$250,000 ($500,000 for a married couple)
as gain without owing any federal income
tax.

5. Predictability. Unlike rent, your
mortgage payments don’t go up over the
years so your housing costs may actually
decline as you own the home longer.
However, keep in mind that property taxes
and insurance costs will rise.

6. Freedom. The home is yours. You can
decorate any way you want and be able to
benefit from your investment for as long
as you own the home.

7. Stability. Remaining in one
neighborhood for several years gives you
a chance to participate in community
activities, lets you and your family
establish lasting friendships, and offers
your children the benefit of educational
continuity.