Conventional wisdom says that buying a home is always better than renting. There are many people who say that renting is really just paying for someone else's mortgage. However, there are definitely situations where renting a home is the smart choice.
First of all, it is not unlikely that renting with allow you to live more comfortably buying a house outright. With a mortgage, insurance, and utilities, the monthly payments on a home can add up quickly. Chances are these payments will total more than the single monthly rent payment you would pay on the same property if you were renting. Considering these facts, an argument could be made to just renting a nice place with the same money.
Renting is also many times safer than purchasing a home. To begin with, you do not need to worry about housing markets that could temporarily make the value of your house sink. This is an especially attractive fact when you consider that "temporarily" can mean up to 10 years. Also, depending on the market, a fixed rate mortgage may not be possible with your current financial situation. If you opt for an adjustable rate mortgages you will expose yourself to a whole other set of risks. Finally, buying a house means you shoulder all of the maintenance costs. That means when a heating system gives out, you are the one who is paying for it. Such big-ticket expenses can be budget breakers.
Also, do not forget that renting a house never comes with any buyer's remorse. If a few months after you move in you discover that you actually cannot stand the neighborhood, just wait a few more months until your lease runs out and the problem is solved.