Once you have chosen the property and identified the sale price, you move on to the purchase. And here we need to make a serious reflection. There are two situations in which the buyer can find himself: he has the money to pay it in cash or he has to access a mortgage.
Beware of buying a house in cash without evaluating this aspect
If you don’t have the money to buy the house, then the only way is to take out a mortgage. But if you have cash, paying for the whole property with all your savings could be a risky choice, not a happy one https://www.provisionhomes.com/we-buy-houses-nashville-tn/
Why? Because right now the economic situation is such that mortgage rates are almost zero. On the market today it is possible to finance the purchase of a house up to 80%, with total costs ( APR ) of 0.9% per year on the requested capital. Now, suppose you have 100,000 euros in savings and want to buy a house that is worth exactly 100,000 euros. If you pay in cash, you are left without a euro in the bank, or almost.
For any eventuality, purchase of a new car, sudden expenses, a trip, you are forced to apply for a loan. At what cost? Not less than 5.5% per year. These are the current costs on the market. So isn’t it better to pay 0.9% and maybe put the capital in a deposit account or a low-risk bond? This operation will at least cover the interest costs of the loan. So be careful about buying a house in cash without evaluating this aspect.
is the dilemma that grips those who have to buy a house and have the money to pay it all in cash. Most people think the best solution is to pay everything up front and get it over with. But is not so. Having a cash reserve today is useful and prudent. And if you can have money at almost zero cost, better go into debt. The Experts of ProiezionidiBorsa will illustrate the reason, advising you to be careful about buying a house in cash without evaluating this aspect.