I always felt rent was a waste of money. As soon as I could afford a house I bought one.
Personally I think it's quite stupid to rent a house. I see ads for people renting a house where the rent is more than my mortgage/taxes per month! What a scam. I can see doing it in a temporary situation - new to the city, newly divorced, etc - but more than that is just a waste.
You might think it's stupid but remember mortgages are 30 year commitments. You aren't just buying a house, you are also paying the bank approximately 4% interest, front loaded on the loan, maintenance and upkeep, and property taxes.
Not everyone has a 20% down payment for a house. Very few can purchase a home with cash upfront.
We have been renters for 17 years now. No regrets. We have moved 3 times in 17 years. We are military.
The house we currently rent costs $3250/month. It is 2 years old and worth $950,000. Say we wanted to buy it. We have no money for a down payment saved. So let's just mortgage the full amount, shall we? Including property tax and HOA fees, our monthly payment would be $6364.61 FOR 30 YEARS. Total housing cost excluding maintenance/upkeep would be just about $2.2 MILLION. That would translate to 56 to years of rental payments...
I mean, the house we rent costs $1000/month in property tax ALONE. $350 in HOA fees. I think we are actually making out like bandits living here for only $3250. I can invest the $3000 extra in the stock market (theoretically) and have an almost guaranteed 7% return. If I did that for 56 more years, I would have $35,685,504.00.
Tell me again how renting is stupid. Buying a home only makes sense if you plan to live in that home until you die, and you can pay off the mortgage as quickly as possible.
The housing market has a historical appreciation of 3% since it began tracking data. The stock market has outperformed the housing market at an average return of 8% since inception.
A house is a place to live. It is not an investment unless you own it and rent it out, thus putting money in your pocket every month. Otherwise it is a liability, a continued expense. Just like rent. Except most times rent is cheaper than owning overall. Renting is not throwing money away. It is paying for a roof over your head. No different than any other necessity.