When you buy a house, you own an asset that can appreciate over time. You will experience a sense of pride when you own your own home. You no longer have to pay rent, or live with roommates or family. It is one of the first steps to financial security, allowing you to begin to create a credit history. It is a form of forced savings (since you must make monthly payments if you purchase your home with a loan or mortgage), and this money is going both to you (in the form of equity) and the bank or mortgage company (in the form of loan payments). It is also a good way to diversify your portfolio through real estate ownership. You can get tax deductions for a home office and deduct the interest on your mortgage. You may also qualify for special loan programs at lower interest rates to purchase a home. You may also sell the home at a profit without paying capital gains tax (up to a limit), and use the proceeds to pay cash for your next home, thus saving the money you would have used for mortgage and interest payments on your future house.