Buying a house is an investment that requires quite some amount of money hence you needed to have a good plan for it Just like any other investment you need to have a budget of what kind of house do you want. You can opt to buy a house in cash or on installments basis whichever works best for you.
Below are the advantages of buying a home on cash. The following are the benefits of buying a home in cash. When you opt to buy your home in cash basis chances are that the seller may give you discounts. Basically the installment payments are higher since the seller has to consider the time that he would have given you to raise the money.
When the buyer is negotiating the price when he has money on the hand it becomes easier more than when he doesn’t. Life is full of uncertainties the buyer may promise to be paying the money on time and due to some unavoidable situations you find that it doesn’t happen this may cause confrontation but when it’s done on cash no such things can be seen .
The buyer gets to enjoy the benefits of closing costs, application fees for mortgages among many including the insurance. With buying home in cash once you are done with entire transaction the ownership transfer doesn’t have to wait that means you acquire ownership right there.
When you take a mortgage and you don’t have a proper plan on how to handle its chances of losing the property are high since you can’t able to predict what might happen in the future that can limit you meeting the obligation. Losing the property that you have purchase on cash is very minimal the transfer of ownership is done right there after you are done with the payments since this is only what the buyer is obligated to do
Ups and downs of tracing where the buyer might be and having hectic of prejudging whether the buyer can default the payments it’s not there when the deal is on cash basis. You find that when you have money in cash it becomes easier even to budget for that money. In the real estate business when you get money in cash its one way of solving conflicts and also the easiest way to excel in whatever you do this is in the regards that you can use the entire cash in reinvesting somewhere else and hence your business keeps on growing.