I think I've been misinterpreted in my previous posts. I'm not suggesting that renting is better than owning. You have to run your numbers and make your own choice. There are many assumptions to consider (financial and not). The not financial ones often are more important. You have to run your numbers, but in general renting looks better if:

  1. You cannot buy ( :) ) and/or
  2. You plan to stay in a place for a short time and/or
  3. You believe houses are vastly overpriced in your area and they'll return will be negative for a while and/or
  4. You don't want the psychological part of having a house (maintenance, tax payments, ...)

In my case the most worrisome scenario is 3.

Back to our situation, we are buying a house for the pleasure of living in a particular location. Financially it is an OK transaction (fair price, I think).

I'll probably post a little rent-buy spreadsheet as soon as I have time to refine it.

Thanks for all the good comments.