Wonder if buying a home is the right thing for you to do? Relax. Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will appear to you. Here are TEN GOOD REASONS why you should buy a home.

Pride of Ownership
Pride of ownership is the number one reason why people yearn to own their home. And up to this time, owning a home is still considered as the ultimate "American Dream." It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation
Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated. Many people view their home investment as a hedge against inflation. Mortgage Interest Deductions
Home ownership is a superb tax shelter and our tax rates favor homeowners. As long as your mortgage balance is smaller than the price of your home, mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment. And, since most of your mortgage payment goes toward interest in the first few years of home ownership, it's like the government is paying you to buy a house!

Property Tax Deductions
IRS Publication 530 contains tax information for first-time home buyers. Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes. In California, the passage of Proposition 13 in 1978 established the amount of assessed value after property changes hands and limited property tax increases to 2% per year or the rate of inflation, whichever is less.

Capital Gain Exclusion
As long as you have lived in your home for two of the past five years, you can exclude up to $250,000 for an individual or $500,000 for a married couple of profit from capital gains. You do not have to buy a replacement home or move up. There is no age restriction, and the "over-55" rule does not apply. You can exclude the above thresholds from taxes every 24 months, which means you could sell every two years and pocket your profit--subject to limitation--free from taxation.

Preferential Tax Treatment
If you receive more profit than the allowable exclusion upon sale of your home, that profit will be considered a capital asset as long as you owned your home for more than one year. Capital assets receive preferential tax treatment.

Building Home Equity
Home equity accounts for the portion of your home or property that you actually own, and as you make your mortgage payments every month, your equity continues to rise. You can consider it as a type of savings account, where your house continues to appreciate, and your loan amount continues to decline. Your equity is that difference between the property value and your outstanding loan amount. In addition, you can use your own hard work to make improvements that will increase the value of your home. Each improvement that you make will add to the overall value of your home and your way of living. Therefore, you actually make money as you continue to pay off your mortgage! You certainly can't say that about paying rent.

Gain Immediate Borrowing Power
Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.

Financial Stability
One of the biggest rewards of being a first time home buyer is the financial stability you have. On a fixed rate mortgage, you know exactly what your payment is for up to 30 years. Even on an adjustable rate mortgage, you have a cap on your rate, and so you can figure out what your maximum possible payment would be. Renters do not have the luxury of knowing with certainty what they will be paying next year, or five years from now. Also, something many people find is that once they buy a home, everything else falls into place, financially and within the community. When you buy a home, you buy a share in your community.

Establish Strong Credit
Buying a home can help people with less-than-perfect, or even bad credit, rebuild their financial standing. By making mortgage payments on time every month, a homeowner can establish another level of credit history. Timely repayments establish your reputation as a positive risk for lenders, meaning that you improve your credit every time you make a payment on time.

The government is gearing up together with the Navy Facilities Engineering Command (NAVFAC) to design, construct and logistics in support of the relocation of Command, Air, Ground and Logistics units of the III Marine Expeditionary Force from Okinawa, Japan to Guam, USA. Approximately 8,000 Marines and 9,000 of their families will be coming in. In addition, a U.S. Army Ballistic Missile Defense Task Force consisting of approximately 630 service members and 950 family members is anticipated to be located also in Guam . Just imagine how it will going to affect the housing market here. That is why this is the very BEST TIME TO BUY before everyone could even get here and prices will soar up high! Never miss the oppurtunity!