Naysayer Math Just Doesn't Add Up

I read an article this morning that said in one breath that 1) prospective first time home buyers should continue to rent and 2) put their money into stocks, not real estate.

While I respect the opinion, the math just does not work, except perhaps in the wealthier enclaves of the country. Most first time home buyers I deal with are working with a strict budget - they have a small amount to put down, and plan on spending , say $1250 per month for their mortgage and taxes.

If they continue to rent, that same monthly budget goes to their landlord. It is not "extra" money. They cant rent for $1250 a month and put money into stocks.

If the monthly budget is either going to rent, or into the equity of a home, the choice is clear.