This is sorta Homeownership 101, I think there’s a couple factors Sir Mixxalot is overlooking:
1) What is your current effective income tax rate? Because for the first many years, your mortgage payment is almost all interest (deductible) and property taxes are also deductible. So if you’re currently paying a high % effective income tax rate, that % of interest and property tax are effectively subsidized for you.
2) How long do you plan to stay put? Because in ten years your rent will have increased, perhaps significantly, but your mortgage payment will stay the same, and your property tax will have increased only marginally.
That said, I think the current market is way overheated. Of course I’ve been saying that for a decade now, but I dunno, I don’t see how these valuations are sustainable longterm, so
3) Where is it that you really want to live? If that neighborhood is significantly cheaper to rent than buy, even factoring in (1) above, by all means, keep renting and socking your savings away.
