“Pay for a house with cash??!”, you may be asking yourself. “How in the world do you expect me to do that?” Well, to be honest, there are people purchasing real estate with cash every day, so it’s obviously possible. Not only that, but those that dish out cash instead of borrowed money get even richer by doing so! It’s time for you to save up that cash before moving into that next house.
Benefits of Paying With Cash
Cash can be tough to come by sometimes, but after reviewing the benefits, I hope that you’ll start filling up that piggy bank even faster than before!
1) You’ll Have Emotion on Your Side – Imagine having your home for sale and a man dressed in a suit walks up to your front door. As you exchange greetings, he explains to you that he has an interest in purchasing your house and has the cash on hand to do so at this very moment. He then lifts the briefcase that’s been at his side and pops the lid.
It’s more cash than you’ve ever seen in your life. You soon find out that the cash equates to only 75% of your asking price, but he’s willing to buy it now and there might not be another buyer coming along for months! Would you take the deal? If you’re the average person with their home for sale, you would absolutely take the deal.
Cash gets people excited, and you can certainly get a deal when you’re able to flash it for a home purchase.
2) Less Hassle For The Purchase – Have you ever bought a house with a bank loan before? It’s a huge hassle! First of all, there is a long waiting time to get approved, there is a ton of paperwork to fill out, and if you mess something up, you may even lose your deposit! If you’re buying a house with cash, your transaction could occur with just you and the owner.
3) No Interest Payments – Not only could you get a deal on the purchase price when you’re paying with cash (benefit #1), but you’ll also avoid paying all of that interest to the bank! Sure, rates are low right now, but it still adds up! If you purchase a $200,000 house at a 4% interest rate with a term of 30 years, you’ll overpay by $144,000 just because of interest! Avoid the interest by paying with cash – your pocket book will thank you.
4) No Worries of Foreclosure – It’s tough to know what will get thrown at you in life. Perhaps you’ll experience a job loss or you’ll acquire a life-threatening disease, which could cost you thousands of dollars. If you have an outstanding bank loan that you simple cannot pay, the bank has every right to take your home, even if you own 99% of it. If, however, you paid for your home with cash, it is yours to do whatever you want with it. Sell it, keep it, rent it out. It doesn’t matter because it’s 100% yours.
Save Up Your Cash!
Of course it’s not going to be easy to save up thousands of dollars for a home purchase, but it’s definitely possible. Plus, there are obvious benefits for your future if you achieve this goal. Good luck!
Do you think you’ll ever buy a home with cash?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.