Is it a bad idea to buy a home from an investment perspective?

In my analysis I did include a 3% inflation rate for rent increases as well as property tax increases. The analysis is looking at the long term 30 year outcome of taking the net balance you have renting and putting it into a higher return investment. In many cases you can do better even though you're making rent payments.

Mortgage is not always worse then rent. I'm saving about $200 a month including taxes by having a Mortgage instead of renting a comparable place. It depends on the area and what you are looking for.

Interesting point, and just what I was thinking. If I could go for a 290K, and rent out one part/room for ~$1000, I'm pretty well off having the money with me that can help pay off the mortgage or part of it and keep it all to myself at the end of 30 years. Otherwise, it is scary to put all my money into a dead investment for a "perceived value" in X years into the future which I'm (or anyone else for that matter) not even sure of. A lot of factors to consider here, and clearly no thumbrules. Interesting article and that data was an eye-opener.

That's a great point. If you are willing to have a tenant living with you it would definitely be a way to leverage your real estate investment for a better return. I think most people aren't willing to do this though.