Now it makes more sense than ever to purchase your first home or invest in real estate vs. renting and making someone else rich!

Here are 3 points where renters are losing money compared to homeowners:

1.  You're missing out on the appreciation that the property gives to the property owner. Appreciation is a term used in accounting relating to the increase in value of an asset, which means in real estate terms, added value to the property. With price so low, over the next 5-10 years, you will be locking in the appreciation of the building as long as the market cooperates.

2.  Renters don't get to freeze their monthly housing expenses like home buyers can. Of course, many home buyers get mortgage payments with adjustable interest rates and their payments go up over time. However, these payments will not go up over the long term like rising rent payments! A fixed rate mortgage in the 3's or 4's - are you kidding me? Those are unbelieve rates and now is the time to lock in an affordable mortgage payment.

3.  Renters don't benefit from tax advantages. Homeowners get income tax deductions. Tax deductions for interest costs, for instance, save tax payers thousands of dollar each and every year.  Buy a home this year and write off the loan origination charges for 2011!

Emotional Satisfaction of Home Ownership

Besides losing out on making money with real estate, renters don't get the same satisfaction of home enjoyment that benefits home buyers. Many landlords won't allow you to paint your walls in colors that you desire. Also, you won't feel like fixing up the property with custom window coverings and you get little say in flooring materials. Because you can't make your personal statement, you won't feel like you're HOME as much as home owners who feel emotionally connected to their property.

As I have practiced real estate, one of the biggest hurdles that would-be buyers cannot seem to overcome is saving enough money to come up with a down payment. With several loan options to choose from, (depending on your credit), FHA and HomePath provide affordable down payment options requiring as little as 3.5% down to purchase a home. People sometimes have this misconception that it requires thousands of dollars for a down payment, but it really does not.  With careful planning and just watching what you spend, those considering a purchase can have the funds saved on in no time at all.

Remember, to add in about $2,000 extra for your loan origination and pre-paids. For example, right now in Mesa if you bought a $75,000 home through an FHA loan and put the minimum down payment required (3.5%), and got the seller to contribue $3,000 towards your closing costs, you would to come up with about $3,800-$4,400 to buy a house.

The average rent for a 1,500 sq ft home, 3 bed, 2 bath in the valley is around $1,150 per month. The same house if purchased, would be $550-$700 per month.

If these amounts sound high (or low) to you, check your local area. Perhaps your monthly rent is only $1,000 and houses cost less than $200,000.

Talk to a mortgage loan officer and see how much of a home you can afford.

If you're renting, make one of your priorities to buy your own home in 2012.