<prompt> Human: I feel like I have heard of plenty of arguments for buying real estate. Buying real estate seems to be a super good financial decision. Are there circumstances where it isnt? Does one have to invest in real estate in ones lifetime to be considered optimal v renting. At first glance I feel like the answer is yes; reason being that paying rent is money that is never going to be recouped and the real estate market rises over time. Additionally, there are tax breaks associated with owning a home. Would investing in REITs with the capital be a way to offset this? You still would be losing out every month to rent v a mortgage payment...I would really like to hear about circumstances or general arguments against buying a home in ones lifetime; and if this can be considered financially optimal under any scenarios.  <response>: Im sure that Warren Buffet would be doing just fine if he was still renting vs. buying. Just look at Guinness Brewery. They have been renting for the last 300 years and have done just fine.All jokes aside, buying real estate is an investment. There are other investments that exist stocks, bonds, REITs, businesses that can do better than real estate and worse. If you are of the opinion that you never want to buy a house then you can still make it financially. I normally recommend that people dont consider their home an investment as much as peace of mind. If you own your own house you dont have to pay rent. A lot of people do not invest enough over their working careers and owning a house is a form of forced savings. If you feel confident that you can save outside of owning a home enough to make up for renting down the line so be it. 