Is buying a home better than renting?

I get asked this question quite a lot these days.... Is buying a home better than renting?

I have heard lots of pros and cons on this subject, so... here is my two cents worth...

Granted, owning a home might never create the opportunities that some have had in the past, prior to the housing meltdown (which for many turned out to be "wealth on paper only", however, assuming you plan to live in the home for at least 5 years and are secure in your job, and other external factors are not an issue, then now may very well be the time for you to take the plunge and buy that home you have had your eye on.   

Owning a home "forces" you to save money while building equity. Even though monthly mortgage payments may be slightly higher than renting an apartment, most renters do not put the difference into a savings account.  The portion of a monthly mortgage payment that's allocated toward the principal of a mortgage shouldn't be viewed as a cost, but rather as a forced monthly saving, because in the long run it's building equity in the home. Secondly, unlike paying rent, the mortgage interest is tax deductible (until congress decides to change this, that is). So.... even though home price may never again see the (artificial) wealth generation we have seen in the past, you might still be better off building equity over the long term as you pay off the mortgage, and get a tax deduction to boot!