I have a graduate degree in Economics. I also have an undergraduate degree in Accounting. Nevertheless, neither of these degrees provide very much insight into investment decisions.
In my opinion, real estate provides a horrible rate of return compared to large stocks. I choose to rent and invest my money instead of buying. Here is an example.
Suppose I purchase a house for $100,000 with 20% down on the mortgage. On average, the house will appreciate at approximately the rate of inflation. We will make the unrealistic assumption that inflation is zero. We will also assume that the rate of return on large-capitalization stocks after inflation is 7%.
When an investor moves in and out of the stock market very slowly, stocks are the safest form of investments around. For example, the investor who moves into the market over a period of 10 years and then moves out over a period of 10 years is very safe. The likelihood of your investment underperforming other options such as bonds is next to zero.
Assume that you pay 3% interest on a 30-year $80,000 mortgage. You will spend $2,400 the first year on interest for the loan of the house. Plus, your $20,000 downpayment will be tied up in the house and earning nothing. Your lost income on the $20,000 is $1,400 per year.
Assume that you own $100,000 in stocks. $20,000 goes towards the downpayment. The other $80,000 stays in your stock account. You will make $5,600 per year on your stock every year. You pay $2,400 dollars per year on interest. Your net gain will be about $5,600 - 2,400 = $3,200 per year. This second scenario more closely resembles renting than owning.
Completely, paying off the house is a bad idea. You will wind up getting zero return on your house. Plus, your $100,000 will be tied up in the house instead of in the stock market.
Purchasing a house is an emotional decision. Some people are simply happier doing their own maintenance and customizing the house over the years to their personal preferences. A house might make you happier, but, renting will make you richer.