When trying to decide whether to rent or buy . . . remember the advantages of buying.  A home can be an important factor in building a solid financial foundation for your marriage.  Your once-a-month payment is no longer cash flowing into someone else's pocket. With each mortgage payment, you are "buying" something tangible, building equity. The longer you own your home, the larger your equity.

Homeowners are a different breed. When you live in a neighborhood or building that is basically owner-occupied, your neighbors, like you, are willing to invest more of their time, money, and efforts to improve their property. Consequently, the value of your property increases.

A home is an investment that helps you keep up with inflation. Although not all homes appreciate at the same rate and some years are better than others, real estate has historically kept pace with and has usually appreciated faster than the rate of inflation.

The benefits of home ownership are many. All interest paid on a mortgage is deductible for income tax purposes. Property taxes are deductible and you may receive special tax deductions for energy efficient improvements. A home of your own creates security for your retirement years. Unlike rent, which goes on forever, the mortgage on your home will be paid some day, providing you with "rent-free" living for your retirement.

Even if your first home isn't your "dream home," you will be working your way up to it when you buy any home. With appreciation and possibly some improvements, it may provide you with enough equity to make a down payment on your dream home later.

Nearly every young couple has the problem of arranging financing for their first home. The following are several methods that may be available to you.

• REGISTRY/GIFTS: A new trend in home financing is a registry system. You can register a "down payment" account where friends and relatives can donate to your down payment for a home as a wedding gift.
• LOANS: You may borrow your down payment as long as it is a secured loan (such as a car, furniture, etc.).
• CO-INVESTMENT: Parents can join in a home purchase as tenants in common.  Parents make the down-payment; you make the monthly payments as rent. Both share, eventually, in the capital gain from an appreciation at the time of sale.
• OUTRIGHT INVESTMENT: Parents purchase in their own name, rent to the couple, with an option to purchase, at cost, in the future.  How much money do you need to buy a home? With a FHA loan, it can be as little as $3,100 on a $100,000 home, only $1,350 on a $60,000 home. For people with exceptionally good credit, there are even loans where you can pay as little as 3 percent down, and that can be borrowed.  Remember, whether it's wood or brick, a town-home, condominium or a single-family dwelling, one thing is very certain about the first home you and your groom purchase, it is a symbol of your commitment to each other . . . and it represents the independence and freedom of choice you have exercised in beginning now to build the financial foundation of your marriage.

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