Given the total amount you are going to spend on living, whether its a mortgage or rent, and given the total market of houses and rent prices, there is a clear

Given the total amount you are going to spend on living, whether its a mortgage or rent, and given the total market of houses and rent prices, there is a clear line on whether you should rent or buy. Over the course of 30 years, you will necessarily lose money to interest, money that you will never get back. At current rates of ~6%, you will pay more than the house is worth when you buy it. Add to this maintenance, property taxes, insurance, and HOE fees, and thats money that you will also never get back. Lets do some rough math: - 330k house, 6% rate. Total amount you will pay over 30 years is $712,266 - Yearly fees: HOA = 3000. Tax = 2500, Insurance= $1,820. Total over 30 years: $138600 Combined total: 850866. Net loss assuming house value stayed the same is ~520k An area comparable. $1400 rent a month over 30 years is $504k. Difference in monthly payment is about $1000. Assuming a conservative 2% growth with safe investment, that $12000 per year put into those instead of mortgage over 30 year nets you about $500000. So you are better off renting. Of course things change, and house prices can appreciate quicker than you accumulate interest, at which point you sell the house early, which is what most people are banking on. But that is never a guarantee. In the end, you can do the math for you particular situation and figure out if its right to buy or rent. But owning a house is certainly just as much "throwing money away" as renting.