Cash buyers are famous for selling the home

Advantages of paying cash for a house

  1. Easy to buy and sell

By taking the bank out, you are taking away a large source of uncertainty. You won’t have to sit in front of a mortgage broker and hope that your credit score will translate into favorable loan terms. The capacity to pay cash for a a residence, or abide cash as a a dealer, seizes a lot of pressure out of the financial transaction and speeds up the buying process. Paying with cash may also help you negotiate a better price for the purchase, as the seller is ensured a quick and painless transaction

  1. No Mortgage or Rent

For most of us, housing costs make up a huge part of our monthly expenses. Imagine the potential return you’d get from diverting that money to save and invest in the stock market, a form with a much higher potential return.

  1. Sense of security and ownership

If you fail your employment or discover yourself in financial problem, you reclosed on because you hold  the house. This means that no matter how badly things may be taken financially, you are assured of a place for your family to lay their heads overnight.

  1. Available Equity

Are you hitting tough financial times? You will have total equity in your home that you have the ability to tap into in an extreme emergency. However, an adequate emergency fund should be the first step.

  1. Fewer Market Fluctuation Worries

The fact is, when you own a home outright, you can’t reverse the mortgage. No matter what the market does, you are able to make value-based decisions about what to do with your property. If you have to move and rent out the house as a landlord, you don’t need to worry about having enough money to pay off the mortgage. If you have to sell at a loss as long as you live in the house for several years, it is likely that the savings you have earned from not paying the mortgage for several years is enough to offset the loss in principal on the home.

Let’s face it. Paying that much money for something upfront will cost you a large amount of liquidity in the form of cash. That’s why you should only buy a home outright if you’re still able to have a comfortable cash cushion for emergencies.