In most cases, it's better to buy a home than to rent. Renting is better only if your rent is very low, or if you plan on moving in a few years. This calculator will tell you which way is better for your particular situation.
Here's a very handy rule of thumb I came up with: Just multiply your monthly rent by 240. If you can buy a house for less than that, then buying is usually better in the long-term.
It's usually better to buy than to rent, but not in every case, and usually not right away. It usually takes at least a few years for buying to become a better deal than renting. That's because there are some big up-front costs when buying, and your monthly payments from buying are generally higher. However, those payments are building equity in your home -- you're "keeping" some of what you're paying. Also, while you're making your payments, your home generally appreciates in value. After some number of years the equity you've paid into your home plus the appreciation will usually overcome the extra money you had to pay to get into the home.
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