Storm Cattoché is a Personal Executive Realtor© whose mission it is to make it possible for more people to enjoy the advantages of home ownership in the challenging San Francisco market.

In counseling both first time and seasoned home buyers on the benefits and advantages of home ownership as compared to renting, you must first consider the following many advantages of owning your own home:

1. Equity
In the early years of most mortgages, the majority of your monthly payment goes towards the interest on your loan. Over time, an increasing amount will go towards reducing the mortgage balance, or the "principal." As the principal decreases your equity increases. Even if the value of the home does not increase, the mortgage balance decreases thereby building "equity." If the home increases in value through appreciation, your equity will build even faster. Along with this comes the ability to borrow against the equity.

2. Tax Savings
There can be substantial tax benefits and savings attached to homeownership. The interest on the loan of your primary residence is fully tax deductible, if you qualify. This can be significant in the early years of the mortgage when interest makes up most of the monthly payment and especially with the popularity of interest only loans in the past few years. Also, the points you pay at closing when you buy a home are deductible on your income tax statement for that year. State and local property taxes can be deducted as an expense against income, however, the real estate taxes are only deductible in the year they are actually paid to the government. One should consult a competent legal and/or accounting professional for advice relating to your situation.

3. Home Improvements
Although you are not able to deduct the expenses associated with home improvements, making improvements to your home will generally increase the eventual sales price of your home.

4. No Income Taxes
On Capital Gains- thanks to the 1997 Tax Act, once every two years, single homeowners can realize a tax-exempt profit of up to $250,000 – as long as the seller owned and occupied the home as a principal residence during any two of the last five years. Married homeowners who file jointly on their tax returns do not have to pay taxes on up to $500,000 of gain when they sell their primary residence.

5. Other
Additional benefits include peace of mind, no risk of rent increases, security, flexibility to sell or lease, home office deduction and expenses, limited moving expense, payment stability, gaining a sense of community, freedom to design and decorate your home, and much more.

Before you set out on the road to becoming a homeowner, do your homework. In order to become a homeowner you must be ready, willing and able to do so. This means that you are "ready"– you have made a definitive decision that yes I want to be a homeowner. Do not waste your time nor your professional's time if you are wavering between the two. You are "willing"– you should understand that you will have to make some concessions and be willing to work within the parameters of your situation. You are "able"- you have a steady and reliable source of income and have been employed for the past two years. Lenders will take this into consideration during your pre-approval process along with these additional questions:

• Do I pay my bills on time?
  
  
• Is my total debt (credit cards, car loans, etc.) manageable? Can I afford those debts and my mortgage?
  
  
• Do I have some money saved for a down payment?
  
  
• Do I have some money saved for closing costs?
  
  
• Do I have time to devote to buying a home right now?
  
  Or are other commitments a priority?

Additionally, select a real estate professional who is knowledgeable of the market and the area you are interested in purchasing. He or she should be available to answer all your questions and keep you updated on changes in the real estate market conditions. Successful buyers are ones who have educated themselves, are committed regardless of the inconvenience and have prepared themselves adequately to making it happen.