Rent or Buy: Identifying the Best Course of Action
July 14, 2026
A question we often ask real estate investors is whether they want to “Rent or Sell”? We do this as a way to encourage them to always consider the ideal portfolio composition and calibration. Depending upon the investor’s current goals and strategies, this question often prompts owners to consider their best move forward that they may not have considered at the time. They may realize that the best move is to sell the asset and reinvest the proceeds into a better asset or a better market that Auben Realty operates in.
Similarly, renters should ask themselves whether they should “Rent or Buy” as they are mapping out their financial goals and strategies. This is a key planning decision as a recent study conducted by the National Association of Realtors shows that in 2025, the net worth of homeowners is 43 times greater than that of renters.
For renters who have never owned their own home, the financial costs of owning a home can seem overwhelming. You may think that you cannot afford to pay a monthly mortgage payment, real estate taxes, homeowner’s insurance and all of the maintenance and up-keep costs. That could seem to be a financial burden that you cannot undertake.
However, you are already covering all of those expenses and more with every monthly rent payment you make. Your rent payment is paying for the landlord’s mortgage and financing expenses, the annual real estate taxes, their homeowner’s insurance, an allowance that covers all maintenance and upkeep costs plus most likely a monthly profit margin for the owner.
Understandably, a major hurdle for a first-time home buyer is being able to afford the down payment. Many are under the misconception that they must have at least 20% of the purchase price to put down in order to obtain a mortgage. However, there are many programs available for first time home buyers where you may qualify for a no down payment or a minimal down payment mortgage program. There are several lending options available such as FHA with a minimum down payment of 3.5%, VA for qualifying military personnel has no money down options and USDA financing offers 0% down payments for eligible buyers in qualifying rural areas and certain suburban locations. In addition to these programs, there are also creative financing options. One such program is Ownify, which requires only 2% down. Another program is Divvy which is a rent-to-own program that allows buyers time to improve their credit scores so that they can secure a mortgage in the future.
If you want to learn more about how you may qualify for these types of mortgages and determine if the path to homeownership may very well be within your reach, you are encouraged to speak with a trusted real estate agent or directly with a mortgage lender who can explain the various programs available and show you how to begin your journey to home ownership.
This week’s blog post comes to us from Wayne Snyder!