Why Buying a Home Is the Best Option

But, for others, it's not the money, it's the....well, we've come up with five reasons why people don't want to buy real estate. Perhaps you've used these excuses yourself — or know a colleague, a family member or a friend who has. We've enlisted the aid of experts — Stacy Francis and Nancy Flint-Budde, certified financial planners in New York City and Salem, N.Y., respectively, and Mark Schussel, a spokesman for Chubb Group Of Insurance Companies in Warren, N.J. — to counter these excuses and knock some sense into the real-estate challenged.

Counter: Well, owning your own home IS a responsibility — and if you're not ready for it, then don't do it. Of course, you'll miss out on nice tax breaks for mortgage interest and property taxes, which make owning a compelling proposition for many. Not to mention, you're not exactly building equity when you split the rent with the roomies (but, hey, it does help with the cable bill).

"I look at renting as writing a check and throwing it out in the garbage," says Francis, who often advises clients on buying apartments in Manhattan. For many people, buying a home is their first crack at building their net worth over the long term, she says. The traditional way to ease into home ownership is to buy something like a condominium or townhouse, so your weekends aren't spent at the home-improvement store picking up weedwhackers. But be careful: You might feel like a real adult once you own. "You are no longer at the whims of your landlord to raise your rent, or sell your building," Francis says. "It really gives you stability."

Counter: Many people consider their home an investment. "We call it a 'use asset,'" says Flint-Budde. "It's an asset that you own, and you hope it will appreciate, but you are using it along the way." That means even if your home doesn't appreciate as much as your favorite stock or exchange-trade fund, you still gain because it doubles (hopefully) as a nice place to live. And homes historically appreciate over time — so if you are able to hold onto your abode for a minimum of five years, you'll likely see a significant increase in value, Flint-Budde says. In its latest report, the National Association of Realtors said typical sellers are still experiencing healthy gains on the value of their home over the last five years, even in areas where prices have fallen. The group estimates that the median five-year price gain is 41.8%.

Still rather build your securities portfolio than buy a house? "If you have to turn around and pay $1,000 a month to rent somewhere, you may have less available to put into stocks," Flint-Budde points out. "And at the end of the day, if you put some into stocks and some into real estate, you would have diversified your portfolio more."

Oh, and for those averse to paying taxes? Don't fool yourself. Even renters pay property taxes. That's often what most of your rent check goes to pay, and your landlord — not you — gets the tax deduction.