* You need a tax break. The mortgage interest deduction can make home ownership very appealing.

* You are not counting on price appreciation in the short term.

* You can afford the monthly payments.

* You plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home include real estate commissions, lender fees and closing costs that can amount to more than 10 percent of the sales price.

* You prefer to be an owner rather than a renter.

* You can handle the maintenance expenses and headaches.

* You are not greatly concerned by dips in home values.