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    When people plan to buy a house, the first thing that comes to mind is mortgage. Cash payments aren’t buyer’s first option, which isn’t surprising given the cost of Real estate listings in Quebec City or anywhere else in Canada for that matter.  Paying fully in cash is difficult but not impossible and there may be some advantages to it.

    1. Cash wins bidding wars.

    If someone else is interested in the property you’re eyeing, you’re still most likely to win the bidding if you can pay cash. Even if the other party can up their offer, sellers might prefer cash payments, as it’s not as risky as a financed deal.

    2. It eliminates having to pay fees and interest rates, letting you save money and getting more bang for your buck.

    Cash purchases don’t require you to pay appraisal fees, mortgage origination fees, and a lot of other charges lenders ask from loaners. You also don’t have to worry about paying interest so if the property costs $100,000, you only have to pay that amount for the actual house instead of having to pay up to double the price because of the per annum interest that accumulates over the years.

    3. You won’t have to deal with tons of paperwork.

    Most of the paperwork involved in purchasing a house has to do with the loan you need to apply for. So, if you don’t need a loan, you also don’t have to spend hours filling up forms and processing them.

    4. No threats of foreclosure, which can minimize the stress of owning a house even in tough economic situations.

    If you pay for a house with cash, you already own it. You won’t have to deal with the bank or any crediting agency that can foreclose on your property because you owe them money. This gives the process a sense of security, guaranteeing that you’ll always have a home no matter what happens.

    5. You can own a house even without a good credit rating.

    If you’ve never really worked on your credit rating or you were away for a few years, paying for a property in cash is the best chance you have at owning a house. As loans rely on credit history, there’s a low chance that you’ll be approved for one if you have low credit scores. With cash, though, you already have the money to pay for the property and no one has to look into your credit anymore, making the process a lot simpler and possibly faster for you.

    Of course, there are also a few setbacks when paying in cash. For one, you’re not exactly liquid in terms of finances. Spending such a huge amount of money at one time can deplete your cash reserves and it will be hard to tap in times of emergency. However, if there will still be a good amount left in your bank account even after you purchase a house, this shouldn’t be a problem. Without a mortgage, you also won’t benefit from tax deductions.

    If you’re okay with the trade-offs of buying a house in cash, then you might benefit from it more by doing so. Make sure to do the math and seek some expert financial advice before taking the plunge, though, so you can really be guaranteed that you’re doing the right thing with your money.

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