Should I pay cash for a home or make monthly payments? What are the pros and cons of buying a condo than to get a single family home.?

Asked by Octavious, Jacksonville, FL Sun Aug 19, 2012

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18
Beverly Howe, Agent, Naples, FL
Thu Aug 23, 2012
Interest rates are extremely low, there is definitely a benefit to using money offered at such low rates and keeping cash in the bank.Consult a financial planner or accountant to determine which option is best for you.

Condominums are often like buying stock. For the most part they are all appraised based upon their general characteristics. Typically, because all properties get "dated" decoratons don't count a lot on value. He who has is property listed for the least is likely to sell theirs first. A house has land beneath it and historically a house will appreciate quicker and hold it's value better than a condo in a soft market.

Lifestyles are important when making this choices. There could be benefits of a pool, clubhouse and exercise facilities in a condo, that you may not get with a single family home. Condos are great for second home ownes because they can turn the key and walk away for months at a time and not worry much about maintenance on the property.

Beverly Howe, ABR, GRI, TRC
Informative homepage: http://www.floridabuyerbroker.com
Owner – Broker
Email: broker@floridabuyerbroker.com Florida Buyer Broker
Local Direct: 239-269-2766
US and Canada Toll Free: 1-800-283-7393
1 vote
Joe Stafford, Agent, Pembroke Pines, FL
Wed Sep 5, 2012
You have a good question, one I am asked all the time.

In regards to Cash or finance the answer is both;
Cash will free up your monthly debt and allows for some extra money in the bank or for spending every month. Also if you own a property outright it is nice knowing the bank cant take your home from you, there is nothing to default (except taxes and/or maybe an association fee) There are no tax write off benefits with paying cash.

Financing is cheap these days, with rates as low as 3.25% in the recent months you can borrow for next to nothing. If you invest money you can have a much better return in most cases than what your interest would be. Also with financing you can write off the interest paid for your taxes. You will have a monthly debt to deal with.

So it comes down to a personal preference. I can help assess your needs if you would like some more information.

In regards to Condo or Single family again up to your needs.

Condo will typically carry a high(er) monthly fee to pay for insurances,trash,amenities, etc. and if something gets damaged and has nothing to do with your unit sometimes a special assessment will be added which you will have to pay part of. Typically there is little to no upkeep with a condo for the unit owner. You must follow set rules and regulations.

Single Family has a lot more upkeep and if something goes bad it is 100% on the homeowner to fix. Sometimes no monthly dues are expected and you can do pretty much anything you want.

Again a personal preference.

Call me anytime to discuss your options and I will help make sure we find the best fit for you.

Joe Stafford, PA
Keller Williams Realty
954-260-3229
Joe@TheStaffordTeam.com

You can search on my website http://www.FortLauderdale-Homesforsale.com
0 votes
Linda Diamond, Agent, Boca Raton, FL
Thu Aug 30, 2012
Depending on your financial situation both could be a good option.
0 votes
Alex, Home Buyer, Los Angeles, CA
Tue Aug 28, 2012
Money is cheap these days, so if you can find a better investment for your money it can be better to take a loan and invest your money in other ways... it all depends on your specific situation and what other investments you may find. But having all your savings (or a huge chunk of your savings) fully invested in your house can be risky because real estate is not always a liquid market, and the "right time to sell" can often be years away from the time when you actually need that money again.
0 votes
Tom Priester, Agent, Tequesta, FL
Mon Aug 20, 2012
Dear Octavious,

To me the best play in this environment is to borrow as much as possible for as long as possible and purchase a property you will be happy in for 10 or 15 years or longer. Interest rates are being artificially depressed but this too shall pass. Once rates start climbing, and they will, those who have locked in 30 year fixed rates at these incredible levels will be laughing all the way to the bank.

I hope this information is helpful but if you need anything additional please do not hesitate to give me a call.



Always at Your Service,


Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
tom@tompriester.com
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Jackie Rodri…, Agent, Weston, FL
Mon Aug 20, 2012
Hello Octavious,

Well, if you have the cash course it is better to pay cash for your Property, then you don't have to pay interest of the loan and also the closing cost are cheaper that regular closing cost with Mortgage and by the end of the day you ending saving a lot of money......

In reference of to buy single Family Home or buying a Condo, all the depends what is your life style, also depending where the Single Family Home and the Condo are located, there are Condos that can cost you as much as single Family Home, also all depended how much is the HOA, because no only the Condos have HOA also the Single Family Homes.

If you have any other question, please don't hesitate to call me,

Best Regards,
0 votes
Ronnie Ratne…, Agent, Coral Springs, FL
Mon Aug 20, 2012
Home verses Condo? It depends on your lifestyle..Purchasing a condo you will not have the responsibility of homeowners insurance, yard maintanence, etc.

Now is the best time to purchase a detatched free standing home as there are still some great deals to be had.

Many buyers are using their cash these days to purchase, as they dont know where else to put their cash investments and to avoid paying all the mortgage costs etc....

I have been selling Real Estate for over 30 years in the Parkland/Boca Raton areas. If you have any questions please contact me directly.

Best Regards,

Ronnie Ratner-Sheldon
Prudential Florida Realty
561-715-7085 Cell
954-340-9059 Office
0 votes
Ana Tenaglia, Agent, Boca Raton, FL
Mon Aug 20, 2012
Hello Octavious:

Many of the lower priced condos in South Florida are being bought by cash buyers, if you put a financed offer you may lose the bid to a cash offer. If it is a "hot" property attracting lots of interest, you have a better chance of getting it if you offer to pay cash. You can always get a mortgage for it later on.

Also, some properties that need lots of work are hard to finance. The same goes for condo financing if you already own a property and are buying a condo as an investment. Check with your lender first if that is even an option. Condos are harder to get financing than non-condo homes. Some condo associations don't have a good financial situation and units are not financeable.

I suggest you pair up with a knowledgeable Realtor that can answer your questions and guide you in the entire process.

Please feel free to contact me for more information.

Best regards,

Ana Tenaglia
Realtor Associate
Keyes Company
Coral Springs/Parkland Office
AnaTenaglia@Keyes.com
art1913@myacc.net
0 votes
Steve Bryce, Home Buyer, Coral Springs, FL
Mon Aug 20, 2012
A key condo risk is the financial and operational status of the Owner's Association to which you will pay monthly fees

Defaulting owners are still commonplace and they combined with incompetent management can bring about a lack of the liquidity needed to fund insurance premiums and estate maintenance and improvements

Always ask for - and be satisfied with - up to date financial statements; meet with whoever has responsibility for honouring the Association obligations to owners and other occupiers and if the property looks neglected walk away from a deal unless you have examined and are satisfied with a schedule of works and expenditure which is matched by 'cash at bank'
0 votes
Antonio Vega…, Agent, Saint Cloud, FL
Sun Aug 19, 2012
All depends on your individual situation and future plans.

If you are buying a condo I would place at a minimum 20% down to not have to pay mortgage insurance, and have some equity build up if you ever deside to sell. Personally I would buy the single family home and pay it cash. Single family homes is always a better investment than a condo.

Tony Vega
La Rosa Realty
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Aug 19, 2012
If you have teh cash, of course cash is easier. If you have the ability to earn more than a 4% return on your money, get a mortgage and take the amount ad invest where you can earn more than what you will pay in the ultra low mortgage rates of today.
0 votes
Sally Grenier, Agent, Boulder, CO
Sun Aug 19, 2012
There is no correct answer for you. Regarding cash vs financing -- talk to a financial planner. Does it make sense for you to tie up a good chunk of your money in a house? Or with interest rates so low, are you better off getting a mortgage, and leaving your chunk of money where it is (stock market? money market, etc.)

In terms of buying a house or a condo, that's just a matter of personal preference, family situation, etc. What are your short & long term goals? Are you married? Kids? Pets? Do you like to travel?

With a condo, you won't have to worry about maintenance, as this is typically covered by the HOA. You may even get some nice amenities, like a pool & clubhouse. You may have some limitations on keeping pets. If you plan on raising a family is a condo a good set up for that?

With a single family home, you can expect more maintenance. (lawn care, exterior painting, roof repairs, etc.). But a single family home might be better if you plan on getting married, having kids & pets, etc.
0 votes
Bill Scheidh…, Agent, Fort Lauderdale, FL
Sun Aug 19, 2012
With interest rates as low as they are, most people are borrowing whatever banks will allow under the assumption they could invest and make more than the 3.5 interest they are paying. On the condo, the common area is taken care of by the association so they are less work, but you will pay condo fees. You just have to weigh which makes more nse for your budget and your personal preference.
0 votes
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