Is there any advantage to paying cash for a condo property vs. taking out a mortgage?

Asked by Deneen, Fort Myers, FL Mon Aug 13, 2012

Looking to buy a condo at the beginning of next year--have the option of buying outright or mortgage.

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6
Anna M Brocco, Agent, Williston Park, NY
Mon Aug 13, 2012
Your tax professional, and or, attorney can best advise, consider a consultation....
0 votes
Gail Gladsto…, Agent, 11743, NY
Mon Aug 13, 2012
This is a conversation you should be having with your CPA
0 votes
Julian Mostel, Agent, Nyack, NY
Mon Aug 13, 2012
Deneen,
In addition to the responses from other Realtors (all valid), there is the intangible feeling of not having to write a mortgage check each month. In my experience, many of my clients find that one the biggest advantage.

Julian


Julian Mostel
Associate Broker
Lydecker Realty
143 Main St.
Nyack, NY 10960
845-358-0001 ext. 26
http://www.RocklandBestHomes.com
Nobody Works Harder for You than We Do. Period.
0 votes
Carmen Di Bi…, Agent, Nyack, NY
Mon Aug 13, 2012
Deneen,

I would suggest a conversation with your accountant. While paying cash MAY get you a better purchase price and definitely save you mortgage tax, the mortgage interest deduction may make economic sense as would having the cash available to you. A substantial down payment will alleviate any condo qualification issues and give you flexibility.

Good luck!
0 votes
John Juarez, Agent, Fremont, CA
Mon Aug 13, 2012
Deneen,

Depending on the type of mortgage that you seek, many condos do not qualify for financing. Your Realtor can expand upon that subject for you. Please do seek the assistance of an experience local Realtor to help you make your purchase. The answer to the question that you have posed is only the first of many that your Realtor can help you with. And I hope your know that your Realtor’s expert assistance comes at no cost to you since the seller pays your Realtor's commission in most cases.

Other questions having to do with financing vs. cash purchase have to do with your overall financial situation and investment plan. The leverage provided by financing can allow you to stretch your purchasing power. Again, your Realtor can expand upon this subject for you.

Good luck!
0 votes
allan erps,A…, Agent, Pearl River, NY
Mon Aug 13, 2012
Hello Deneen, In most cases the answer is YES!! Cash offers can close quicker if the Buyer is motivated. The more important factor is you will save 1.05% on Mortgage Tax(obviously not needed), Title costs, etc. In addition as an ABR(Accredited Buyer Representative) there are other factors to that advantage. Please contact me if you wish to get great service and automatic listings instantly that fit your criteria. Best of Luck, Allan


Allan Erps
Licensed Real Estate Salesperson,ABR,SFR
Better Homes & Gardens/Rand Realty
95 South Middletown Road
Nanuet, New York 10954
Voice Mail (845) 624-8100 x141
Fax (845) 624-7137
Cell/Text (845) 304-3040
Email: allan.erps@randrealty.com
Website: allan.erps.randrealty.com
"GIVING MY CLIENTS THE GREAT
SERVICE THEY DESERVE ALWAYS!!"
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