This is a question we mortgage brokers get from clients everyday and the decision is not as cut and dry and some, from either camp, will have you think.  The situation is different for everyone and is not necessarily an easy one to make.

Really, it always comes down to dollars and cents.  First, will you, the buyer, be better off financially by using your income to build equity in a home or, if rent is cheaper than home ownership, could you use the extra funds to pursue other investments that might prove more lucrative.
Homeowners reasonably expect the equity in their home to grow as they pay down the mortgage and the home’s value increases.
 
Historically, real estate has always been a sound, long-term, investment.  While, in certain economic climates and certain markets, it may not make much financial sense to buy and sell in the span of a few years, over the long-term, returns on real estate investments have always proven to be more lucrative than other low to medium risk investments.  Depending on the market, they may also be safer/less risky.
 
Thought, however, is rarely given to the alternative types of investments when renting would mean comparatively lower monthly housing expenses where the difference can be used to invest.
 
At the end of the day, you need to weigh the balance and make an informed choice.  Consider the cost of a home, the down payment required, monthly utilities, maintenance costs, property taxes, interest rates and insurance.  Compare that with all of the associated rental costs.
 
In today’s market, with a very tight rental market where we have seen substantial increases in rent in the past decade and historically low interest rates, consideration should be given to an investment in a property.  If you can qualify for a mortgage, the first step in home ownership, we can help you assess you finances to see if this is the right move for you.
 
Please refer to my website for more information.