Most first time homebuyers will seek the advice of friends, family, co-workers, etc. before making the decision to begin the home-buying process. Before you actually start looking at homes on the market, you should know why it makes sense to buy a home.

Here are just a few benefits of becoming a homeowner:

Ownership: Purchasing and owning your own home gives you a sense of pride and freedom… freedom to pick out the colors you would like to have in your home, along with all the "fixins" (furniture, permanent fixtures, wall coverings, floor coverings, "all" of your home decorating preferences). A true benefit of Home ownership is that it truly is an investment in your future.

Appreciation: Although the market does fluctuate, historically, real estate investments have consistently appreciated.

Tax Write-Offs: Property taxes paid for on a first home are fully tax deductible on your income taxes. You will receive a statement with current year property taxes and a recalculation for the coming year. Share this information with your income tax consultant.

Deductions on Mortgage Interest: Mortgage interest is the major component of your mortgage payment and is fully deductible on your income taxes. Your home is probably the largest tax shelter you have going for you.

Exclusion of Capital Gains: You must occupy your home for a minimum of two years to qualify for capital gains exclusion. This can exclude up to $250,000 for a single person or $500,000 for a married couple of profit from capital gains. As a homebuyer it is not necessary to buy a replacement home or "move up". These thresholds can take place every 24 months. So it is feasible then to sell your home every two years and pocket the profit (within limitation).