There a few major calculation flaws in the theory, ie, tax rate, appreciation expectations, and additional expenses you pay as a homeowner. What you left out is that if you take the difference that you pay for owning a home and save some and invest some you will be ahead and have all the flexibility to go where and when you want and without paying through the nose to move again. Unless you are going to buy one house and stay in it for the rest of your life, then homeownership may make sense. Most people move and start the process all over again. Look at the interest you pay over time and you'll see the ones who make money in homeownership are the banks.

Yes sounds great, but what about the people who for various reasons don't have 25k in savings because they have been struggling all their life to just make ends meet ? They have no choice but to rent and hope the landlord does necessary repairs or that the rental is in a decent neighborhood

You forgot a few expenses: repair costs of home, maintenance of home( mowing/landscaping yard, toilets, AC and heater , water leaks, plumbing issues), increased cost of utilities, loss of income from $25,000 down payment and loss of liquidity. Who can get a house plus closing costs for 10% of cost of house?

I'm not sure where you got the 1% property tax rate but that's unrealistic in today's modern world in areas that average the $250,000 scenario you speak of. I'd also point fingers at the 4% rise you speak of in many parts of the U.S. let alone many parts of the world. You also forgot to put into factor monthly maintenance and costs associated with things that may or may not default if buying a home that is not new...................... I've owned and rented all around the world, I find that renting far outsways anything that even comes close to owning except in a few foreign countries where you run the risk of loosing it all anyway, hence the rent factor is still in full affect.................

renting is stupid. buying is better if you can. renting is just paying for a landlords lifestyle and you have zero dollars to show at the end of the month. with buying a home you have equity.

well damn, i need to talk to some of you guys then. you seem to have a nice handle on the figures

Bu. ying a house and property is an illusion. Just stop paying your property or income taxes and see how long it is really yours. There is also the posibility that the city or governement may decide that they want it because they want to build a sewage plant or put a highway thru it. I saw this first hand in New Jersey, a lady who had "owned" a home and land over 100 years and they physically moved her because she did not want to give it up. It's all an illusion and serves those who stand to gain by perpetuating the myth of ownership. We only use it for a life time, we never own anything.

Very poorly written article that does not include many facts and figures.

How does that calculator get a tax savings of $23,030? You do NOT get to write off your whole mortage payment, only the interest you pay. Also as poinetd out by many other people the renter could invest not only the 25K downpayment, but also the difference in rent vs mortgage payments

I have been renting and recently looked into buying. A foreclosure came on the market that made it affordable for me, a separated female with income of 76K . The PI was $1299/month, by the time taxes, mortgage insurance and HOA fees were added on,the monthly payment skyrocketed to $1925/month. Nice to know I cannot "afford" a foreclosure. The banks still charge money for defaulting yet are trying to unload these. Why not drop the MIP?? Looks like I'll be renting for awhile.