Let me pose a scenario. Assuming you can mortgage 80% of the property at 4.5% and keep 240k in the bank. Once the economy begins to correct, your mortgage rate of 4.5% is fixed for 30 years and will not change. At the same time you can invest your 240k into investments that might at a better time be returning 8-10%. If you invest the entire sum into the house now and the economy begins to grow, all of your money is tied up in the property. At that point the only way to get it out would be to borrow against the asset at the interest rates of that time period. Assuming investments begin experiencing 8% returns, it's safe to say borrowing rates will be closer to 6-7% which is substantially higher. This is a slightly more complex theory that I attempted to simplify. If you want to discuss more in detail feel free to call or e-mail. I'm not a CT agent, but I don't mind sharing the theory regardless.
To the seller, it's all cash. Buyers arrange financing and other than the risk of not getting the loan, it's all the same. The benefit of offering or being able to buy all cash is to take that element out of the equation.
Here is my question to you, as an investor, why would you turn down the opportunity to invest a portion of that while borrowing at historic low rates? Beside the investment return, you get to write off what interest you pay resulting in an even better return.
Just food for thought, you know your circumstances better than I, but if you hadn't considered it you should.
One of the main advantages to purchasing with cash isyou'll have no mortgage payment every month,but one disadvantage is that you'll miss out on taking your mortgage interest as a deduction on your taxes each year.
Are you working with a Buyer Agent yet?
If I can be of any further assistance to you, I am licensed in CT and can be reached at firstname.lastname@example.org