How would you apply scientific analysis to the decision of whether to rent or to buy a house?

this question is under Management.How would you apply scientific analysis to the decision of whether to rent or to buy a house?
You could take the cost of renting the house over the time you expect to live in the house. Including expenses that you would expect to pay.





Then you could take the cost of purchasing a house, including the cost of the loan, all the fee's, maintaining the house, and consider the equity that you would have after however many years you lived at that location. Plus don't forget any Tax Deductions you will have owning your home.





You of course have to add them up, and take a look at all costs.. Your costs will be different depending on the house, and location .





Right now, due to high costs of housing, (market has peaked but has not dropped sufficiently to allow for people to pick up decent housing again), I would call it better to rent for 2 - 3 years until the Market starts to come back (depending on your location) and then purchase a house, that should appreciate in value versus loosing value over the next few years.





Ultimately though, for the long term.. Always better to own a house, then rent.. Interest Deductions help with Taxes quite a bit, and if you work from home.. it is nice to be able to take even more money back from Uncle Sam that way :).