When you compare the cost of rent versus the cost to own numbers, add in an inflation factor on the rent and on the property tax. Then do the numbers for the years you are likely need to be there. Say you have small children or are thinking about starting a family in the future. Factor in the number of years (anywhere from 14 years or more) for them to get through school.
Take a look at rent for an equivalent property, not rent for your current space. Your kids will require more space as they grow. But you don’t need empty bedrooms. Any extra bedrooms should be elsewhere and have tenants in them.
When you compare areas, of course compare school districts. Some might save as much as $100,000 a year by being in a school district that is great. So great that they don’t need a private school.
There is the substantial tax benefit of the interest deduction, and the $500,000 tax free appreciation exemption. I am a big fan of owning with kids in school.
Match the length of the loan to your expected work career. If you're young and plan on working 30 more years, get a 30 year loan. 15 year loans are usually about a ¼ % cheaper than 30 year but your payment will be higher.
I would suggest getting settled in the house at least 6 months before your kids are in Kindergarten. The relationships that are made in school can last a lifetime for both kids and parents.
The package of house and mortgage is more important than house prices. If house prices go down 10%, it’s not a good deal if interest rates go up 30%, from 4.4% to 5.9%.
Beware of debt bombs! An example: a 5 year term, $800,000 loan for 3.65%. I would only take that on a short amortization to minimize risk. For example, I once took a gamble and got 5 year money on a property when we bought it, so we got a 15 year amortization. It came up for renewal recently and rates, luckily, are the same. So we have 5 more years locked in, and as the last 5 years are almost all principal, we don’t have much rate risk. But this could be the proverbial exploding cigar if you're not careful. Short term loans are tempting, but do your homework and be clear on how long you intend to be in the home before committing to one.