"Owning a home gives everyone a feeling of stability and a symbol of personal success in life. We refer to it as the pride of ownership and it is expressed in every house we see," Realtor John Leslie of Alain Pinel Realtors in Los Gatos said. "Homeowners spend thousands of dollars on their homes to tell the world, 'this is our home and we are proud of it.' Their homes reflect their personalities and taste."

To rent or to buy is always a dilemma that first-time buyers face, said Leslie. They wrestle with the fact that their friends are buying homes and they are afraid to make it happen. The pressure to buy is one struggle and the other is paying taxes to Uncle Sam on April 15.

"I always tell my first-time buyers to think of how much they paid in taxes last year and estimate what they will have to pay this year. Then I have them divide that by 12 and let them see how expensive it is to rent every month. To those who whine that they don't have enough saved for a down payment, I tell them that the banks have created 100 percent financing. They are often surprised when they realize they can get financing to purchase their first home," Leslie said.

The biggest obstacle is usually getting the money. Once first-time buyers get financing or a loan commitment, Leslie likes to tell his clients there is a house out there with their name on it.

While mortgage interest and property tax deductions are definite advantages to owning a home, Realtor Helen Cockrum of Alain Pinel Realtors in Los Gatos believes the most important factor in owning is market appreciation. Cockrum cites her son's experience as an example of how market appreciation can make a difference.

"My son bought a condominium three years ago for $280,000. Recently two units of the same size in the same complex sold for $395,000. That's in just three years. Prior to his purchase, he rented and the landlord got the write-offs," Cockrum said. "My advice to first-time home buyers is to make sure you have a good credit rating and good job history. Then buy for zero down. There are many good programs available."

When she counsels buyers who already own a home, Cockrum asks them if they plan to sell or keep the home. "Real estate is an estate builder. My advice is to keep your real estate and buy more," she said.

Besides the investment gains, Realtor Patti Mauseth of Alain Pinel Realtors in Los Gatos thinks it is important to have some type of control over your living environment.

"For most people, having a home base or nest is important in our disposable, fast-paced society. You have the freedom to change anything from the paint colors to knocking down walls. You are benefiting yourself with improvements, not your landlord," she said.

Most importantly, Mauseth believes you have more control over your living situation. "My nephew had to move twice in the past two years due to a landlord selling. That is stress that could be avoided if he was a home owner."

Sometimes it is the fear of buying that stands in the way of homeownership. Dennis Byron of Byron and Associates in Los Gatos tells of a client who falls into the category of wanting to wait until the prices come down before buying.

Byron showed the client a house in Cambrian Park for $375,00 but he wanted to wait a month to make an offer until the seller was more desperate. The property sold for full price. A year later, the property was back on the market for $450,000 but the client passed again because he didn't think it would ever sell at that price.

A few years later, the same house came on the market for $675,000 and the client's response was that he should have bought it when it first came on. When Byron offered to help him start looking for a new home in earnest, his response was, "It's a seller's market right now, so why don't we wait. I'm sure the prices will come down."

Realtor John W. King of Alhouse King Realty in Palo Alto doesn't advise waiting until the prices come down. In addition to a source of pride in knowing that you own the home you live in, King encourages first-time home buyers to compare the value of owning versus renting for financial advantages.

"If you own, you are no longer subject to a landlord and increasing rents over the years. If you equate the net cost of ownership vs. renting after the tax benefits, you usually find that the cost per month is within 10 to 20 percent more than what it would cost to rent the very same property," King said.

When you include the appreciation in value over time, King believes owners can improve their net worth over the long term. He advises first-time buyers not to focus so much on what it costs to buy a home, but to focus on whether they can make the payments every month and whether they plan to live in the property for five or more years.

"The value will take care of itself over time. Even buyers who bought at the peak of the market in 2000 and saw their home value evaporate 20 to 40 percent are now seeing values that exceed what they originally purchased the home for then. It is truly the American dream to own a home and you should do it as soon as you can," King said.