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Your new home
Couple's first house is both symbol and investment

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   When trying to decide whether to rent or buy, remember that a home can be an important factor in building a solid financial foundation for your marriage. Your once-a-month rent payment is no longer cash flowing into someone else's pocket. With each mortgage payment, you are "buying" something tangible, building up equity. The longer you own your home, the larger your equity.
    Homeowners are different. 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 into improving 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 tax purposes. Property taxes are deductible and you may receive special tax deductions for energy efficient improvements. You can even borrow against the equity value of your home to finance other purchases, and get a tax deduction on your interest payments.
    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 eventually, providing you with "rent-free" living for your retirement.
    Even if your first home isn't your "dream home," you will be growing your way up to it when you buy any home. With appreciation and possibly some improvements, it may provide you later with enough equity to make a down payment on your dream home.
    Nearly every young couple has the problem of arranging financing for their first home. Here are everal methods successfully used in recent years. Be sure to check with your banker or real estate agent to see if these financing options are available.

Loan: You may borrow your down payment so long as it is a secured loan (guaranteed by assets such as a car, furniture, etc.)
Gifts: A planned inheritance could be given early in this time of need.
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 any 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.
Co-signing: In all of the approaches above it is assumed that parents may be required to co-sign a mortgage note with the new couple to supply credit-rating and income qualifications.

It should be noted that several of the suggested ideas amount to good business opportunities for both the couple and sponsoring parents.
Whether it's wood or brick, a townhome, condominium or a single-family dwelling, one thing is certain about the first home you and your husband buy. It is a symbol of your commitment to each other. It represents the independence and freedom of choice you have exercised in beginning to build the financial foundation of your marriage.

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