As we've hammered home the point before, Americans have been scared witless by economists, most with personal agendas, that housing still has a long way to go before it hits bottom.

That puts the housing industry in a bad spot. Not only do Realtors, builders and sellers need to convince buyers that now is a good time to buy, the industry also has to go one step further -- prove to buyers that purchasing real estate is a sound investment.

We're assuming that buyers are moving to the sidelines because they're waiting for bargains. But that's not the reason. They're so focused on risk, they're missing out on the rewards.

As a buyer, you get to choose the location, characteristics and price you want to pay. When you sell, you get to take back the equity built, like cashing out a savings account.

But the best benefit is that homeownership, unlike no other investment, is heavily subsidized by the U.S. government in tax relief, which more than offsets most if not all equity losses incurred by falling markets.

From inheriting a house to owning a vacation home to selling a house, Uncle Sam and your friendly local taxing authority lay on the benefits of homeowning so thick, that yearly benefits more than make up for temporary losses in equity. Standard deductions aside, just add up these goodies: mortgage interest payments private mortgage insurance, points paid in purchase and equity loans, property taxes, homestead exemption, capital gains exemptions, and much, much more.

Let's just take one of those. Let's say you lost $4,000 in value on your home during the economic turndown. In that same period, you were able to deduct $12,000 in mortgage interest, the bulk of your housepayment. You're just reduced your taxable income by $8,000. If you're in the 15 percent bracket, you just saved $1,200. Now let's pretend you sold a home, and cleared $20,000. You got to keep all of it without paying the 15 percent. You just pocketed $3,000 in capital gains relief.

Are you beginning to get the picture? As a renter, you get nothing. All you're doing is making your landlord's house payment for him.

So if you're waiting to buy, you're losing money.

Published: May 9, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.