Thursday, August 19, 2010

What should I keep in mind If I am buying home with 100% cash payment?

Are you liquidating an investment to obtain cash for the purchase? If so, what is the 鈥榯rue cost鈥?of the money? (Taxes, penalties, lost interest/future gains, etc)





You should evaluate the opportunity cost of the investment. Would the money, invested elsewhere, provide a greater yield than the money saved by not taking a loan?





Do you have cash reserves beyond the purchase price of the home?





If you needed to access the equity in the home at some future date, are you, or will you be, in a position to obtain a loan to do so?





Do not skip the home inspection.





Do not skip the appraisal.What should I keep in mind If I am buying home with 100% cash payment?
Just because you're paying cash doesn't mean that you should skip on having an independent inspection of the property. Nor does it mean that you should skip the owner's title insurance policy. In fact, as your equity will be 100%, those items are more important that ever.What should I keep in mind If I am buying home with 100% cash payment?
You should keep in mind you're pretty darn lucky.


Second, keep in mind you can't deduct it off your taxes (interest payments) but you may be able to deduct home repairs.


Lastly, keep in mind you are pretty darn lucky.





Oh, but don't forget you're not out of it completely, you have to pay increasing property taxes as well as homeowners and hazard insurance for the rest of your life.


Good luck.
i am curious; house loans are running 2.5-6%, depending on whether they are arms or fixed rate.





YOU wish to save those costs.


i bet you could --with 100% SAFETY,


invest in one of many investment


tools and earn 6-25%.





Thus, if you did, you could have


a house for FREE!





example; this mo, in 2 states,


there is prep for sales of


delinquent tax deed certificates.


u can get one for 0-16% interest


and if you choose only to earn


12-16%, you bid NO LOWER


on any one prop's cert.


[this is not a prop auction, only


a taxes cert auction].





in 3 yrs, IF THE prop owner does


not reimburse you or if their


mortgage company does not,


you get their house for ONLY the


taxes and filing fees and misc


fees from the county


and the court filling fees.


NO mortgage cost!





u can get control of hundreds of


houses that way--if you are sharp.





maricopa county, az, is having


one such auction next mo.
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