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@ffm
Isn't this the most significant point though? In making the comparision between buying a house and investing elsewhere, you are making the assumption that you have equal amounts to invest in each, which is not true. If you are paying into a mortgage you are effectively investing that money. Yes you are taking a hit on interest and there are costs associated with owning your own house but you hope to offset these against a rise in the value of your house. If you are choosing to pay rent (that is less than the cost of a mortgage an an equivalent property) then the amount available for you to invest (for the purposes of this comparison) is the difference between your rent and the equivalent mortgage.
So what I'd like to see is the calculation of how much the value of a house could drop by to give you the same overall loss of paying rent for the same period.