Buying a home cash or by credit/mortgage

Discussion in Mortgage & House Payments started by ExpertAdvice • Oct 12, 2014.

  1. ExpertAdvice

    ExpertAdviceActive Member

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    I've always thought to myself, can I possibly buy a home by cash? Needless to say, I am not rich so buying a house (my dream house) in cash seems like only a wishfully thought, but, do you all think that that idea is plausible and possible, for me, and for anyone who has the idea of doing so? I've had the thought of working while staying with family, in order to avoid paying rent or finding a place where the rent is low so that I may be able to save and invest properly in order to achieve this goal, how plausible do you think this idea is? For the homeowners, how did you go about purchasing your first home? and lastly, is it better to buy a home cash than on credit? I really appreciate your views!
     
  2. Jamille

    JamilleActive Member

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    In my opinion, buying your house by cash is plausible specially so because you're not paying rent on your home which gives you more opportunity to save and invest wisely. A house and lot is a good investment because the lot appreciates with time. If you have cash to buy your own home, I would say it is better to buy a house and lot in cash instead of taking out a mortgage and paying interest. Some people say it is better to invest that money and earn interest that you can use to buy a house. However, the investment that they have in mind carries a lot of risk and you can end up with less money than what you have. If I had that much money years ago, I would have bought my house in cash. But the next best thing is to buy a cheap house which I did. It's a foreclosed property and it only costs about 60% of its actual value. I'll suggest that you start with a small house, box type, and expand later.
     
  3. Jasmin Cottontail

    Jasmin CottontailActive Member

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    If I have the money as well, I will purchase it cash. Not only it will save you the hassle from paying monthly mortgages, it will also save you a lot of money because most houses purchased in cash has zero interest. There are a lot of subdivisions right now that offers mortgages in "great" deals wherein it really isn't that "great" in the long run. They say that it's an investment but the truth is it isn't. Sadly, a lot of people fall for it and mostly fall deeper in debt.