Why do owners have a larger net worth than renters? Why are they happier with their neighborhood and homes?  Here are the reasons:

•Mortgages are cheap.  These are the lowest rates of a generation.  That makes your monthly payment more affordable.  If inflation picks up, you won’t see these rates again in your lifetime.

•You’ll save on taxes.  You can deduct the mortgage interest from your income taxes.  You can deduct your real estate taxes.  And you’ll get a tax break on capital gains when you sell.  Many people will find that these tax breaks mean owning costs them less than renting.

•It’ll be yours.  You can have the kitchen and bathrooms you want.  You can move the walls or build an extension.  For renters, those type of changes are often impossible.  You’ll feel better about your own place if you own it than if you rent.

•You’ll get a better home.  In many parts of the country it can be really hard to find a good rental.  All the best places are sold as condos. Generally speaking, if you want the best home in the neighborhood, you’re better off buying.

•It offers some inflation protection.  Your total rent payment is subject to inflation, while only a portion of a fixed rate mortgage payment can increase.  In the long-run, that makes owning more affordable.

•It’s a great investment.  No, your home isn’t the stock market and you shouldn’t view it as the way to get rich.  Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy.

•It’s forced savings.  If you can rent an apartment for $2,000 a month instead of buying one for $2,400 a month, will you save that $400 for your future?  A lot of people won’t.  Part of your mortgage payment that goes to principal repayment isn’t a cost.  You’re just paying yourself by building equity.