Good luck and congratulations on being in such an enviable position!
Licensed in NJ & PA
You would receive the benefit of being a home owner instead of a renter. You will have an investment. You will get a tax break and you won't be paying someone else's mortgage.
(215) 669-0589 Direct
(215) 358-1100 Office (ask for Renee)
Proudly servicing all of Philadelphia, Bucks & Montgomery Counties for over 11 years now. "if you used another Realtor, you probably paid too much."â„¢
These prices are lower than the interest rates of the 1960's. This will probably not happen again for another 50 years. Take advantage of the great buys and interest rates now.
As Always CASH IS KING..... you can still Negotiate with the use of our Years of Skills and Talent.
Call me if you would like us to Cover your ASSETS...
All the best, John Curci 215-757-2889
Honestly, your biggest benefit will be that you are looking to buy a home in an environment that is being called one of the best times to buy in US history!
If you're paying cash, that will give you even more flexibility with your offers; sellers love buyers who pay with cash. Let me know what area you are interested in and I'll help you get started.
If you have any other questions, please don't hesitate to reach out.
Timothy Garrity | Realtor & Consultant
Licensed Real Estate Salesperson - #RS314897
An additional benefit to financing would be the appraisal. Most "fall-throughs", or deals that went to contract but didn't close do so because of a low appraisal in this market. If you apply for a mortgage and the appraisal comes in low, you have the opportunity to negotiate a lower sales price. The sellers may not accept, but you'll have a professional appraisal backing you up.
Licensed in NJ & PA
Buy a house for $100,000 cash to live in.
Benefit: have no mortgage payment, get a discounted purchase price, get offer accepted quicker by the seller vs. someone who makes an offer for the same house but is not buying cash.
Disadvantage: The cost of "lost opportunity" your cash is tied up - so you can no longer use that cash to invest in other investment vehicles such as gold, silver, stocks, etc. You could also be lending your cash out to investors for a 10% interest return, or with say $80,000 cash - have enough to invest in 3 or 4 rental properties that bring in $400 to $500/month per property cash flow. So in other words, put 3%, 5%, 10% or 20% down on that first-home purchase - and have $80K to $90K available to invest in other things that could bring in $$2,000/mo income! Plus, have money available for other emergencies or urgent issues where you need cash.
There are special first-time home-buyer mortgage programs out there that have different benefits depending on the location of the home, and the program you choose. Some first time programs require 0 down payment, (USDA Loans) - and there are all kinds of first-time programs available - feel free to call or email me for more info or to discuss.
disclosure: I am not a financial advisor or an attorney - just offering my opinion.
You really need to analyze your financial picture and determine if purchasing a property is beneficial to you in terms of investment and tax write offs. That being said, with the interest rates as low as they are at present, it may be more fiscally savvy for you to get the mortgage. Looking at the pros and cons for each individual property may impact your perspective and outcomes.
Being a first time buyer with cash vs. a mortgage might not reap you the rewards you are seeking, have you had a mortgage broker analyze your financial picture and provide you with direction? If you are interested in speaking with reputable brokers please feel free to send me an email and I will provide you with an excellent array of lenders with whom to speak. Email me anytime at : email@example.com
Ana Barlow, Coldwell Banker Preferred, Philadelphia