Experts would say buy a home if you meet the following criteria:
- Need a lucrative tax break. The mortgage interest deduction can make home ownership very appealing.
- Are not counting on price appreciation in the short term.
- Can afford the monthly payments.
- Plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home inchtde real estate commissions, lenderfees and closing costs that can amount to more than 10 percent of the sales price.
- Prefer to be an owner rather than a renter.
- Can handle the maintenance expenses and headaches.
- Are not greatly concerned by dips in home values.