Its a great time to be a first time homebuyer.  There are so many different reasons and advantages to buying a home right now starting with low interest rates and lower house prices. 

But be careful prices have stabilized and will be starting to rise again soon along with the interest rates.  Don't forget that the $8,000 tax credit will also be ending November 30, 2009

Reasons A First Time Homebuyer should jump off the fence!

Did you know you can raise your net worth by buying a home.  The U.S. Federal Reserve Board of Consumer Finance states that the average net worth of a renter was $4,000 and for a homeowner is $184,400.  One of the best ways to increase your personal wealth is by owning a home, paying the mortgage down and increasing home appreciation (equity).  Not to mention tax deductions that you will receive which you do not get by being a renter.

I know that home appreciation has not been that great in the last year or so, but normally in our area it is 6% and probably will work its way back to there in a few years.  The average appreciation between 1950 and 2002 was 4.8% in the United States, so owning a home is a good investment.

And don't forget that $8000 tax credit for first time homebuyers.  If you pay points to lower your interest rate you will also receive a tax benefit.

One major long range reason for owning your home for tax reasons is mortgage interest, PMI insurance & real estate taxes. Other items you can possibly deduct include moving expenses when a job is involved and home improvements that improve energy efficiency. (Always check with your tax professional to see what you can deduct). 

So think about jumping off that fence and building a lovely fence around your new home.  Contact a good financial advisor and a realtor and start moving!