Why buying a home is the smart move for just about everyone

Ben Carlson, CFA, doesn't recommend buying a starter home - one you're planning on keeping only for the short term.

A forever home, however, is a different story.

On his blog, A Wealth of Common Sense, Carlson highlights buying a long-term home as one of 10 lifetime purchases that are worth the money.

Why? First of all, it makes the future more predictable.

"If you can get a 30 or 15-year fixed rate mortgage, especially now at the current interest rates, and know your payment for the next 10, 15, 20 years, that's great from a financial planning perspective," he said. "The interest you're paying is very low, and you get tax breaks as well. You can grow into the payment over time and pay more in the future, or use that excess cash for savings, because your housing costs are fixed."

That's not to say that Carlson, a homeowner himself, recommends buying to save money. In fact, he said, in his personal experience owning a home is much more expensive than renting. For instance, he's constantly surprised by unexpected expenses, like the costs of yard maintenance after years living in an apartment and fixing things that break around the house, and doing improvement projects. After going through it himself, he said a new homeowner could probably plan to add another $20,000-$30,000 to their budget. "I think if you did the full cost-benefit analysis for buying a home, it would probably look a lot worse than people expect."

But there are some benefits you can't qualify with a price tag. Carlson's other argument for buying a home is the "psychic income" - the emotional benefit of putting down roots. "There's a sense of community and home, and you can fix it up how you like," he said. "Owning a home is something you can feel proud of and make your own in a lot of ways."

Because it isn't just about the number.

"I don't think we live in a spreadsheet, where everything is a cost-benefit analysis," Carlson said. "In a lot of ways, it's worth that extra effort if you can find a place you like and can settle down in."

This doesn't mean everyone should run out and buy a home immediately. In fact, Carlson is a fan of renting until you're ready to make the financial commitment for a decade or more - because if there's one thing buying a home isn't, it's a money-saver.

"I think for young people, renting is underrated," he said. "When you're young, renting gives you more options. People say they don't want to pay someone else's mortgage, but I think especially when you're young and not tied down, it gives you the ability to pick up and move to another city for a job - a little leeway. A house is much more expensive than people think. It's more than just a mortgage."