When you buy a house you own an asset that can appreciate over time. There is a sense of pride in owning one’s 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. It allows 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 to both you (in the form of equity in the house) and the bank or mortgage company (in the form of a loan payment). 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. Additionally, you may sell the home at a profit, without paying capital gains tax, and use the proceeds to downsize and pay cash for your next home, thus saving the money that you would have used for mortgage and interest payments.