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Buying seems to make more financial sense because the equity is like growing savings account and the interest on a mortgage is deductible on taxes (can't do that while renting). When you pay the house off, the money going toward mortgage is now your extra money to invest. Live in an area where the homes around your house are more valuable. They keep the property value high, and they add to your equity when you sell. Look on homesales.gov for some foreclosure deals where someone else has already paid in part of the equity for you.