And why would it ever be a good idea to borrow if you can pay cash and pay no interest to the bank?
In: 18
First you would have to have that money at hand. But then the question becomes, what else could you do with it other than buying a house? Realistically, if you have enough wealth to buy a house outright, you have it invested somewhere. Buying a house is just a different sort of investment. So you would have to consider, is it a better investment and is it worth the reduction in diversification. Maybe the rates you could get from a bank aren’t so bad after all?
Well, the question becomes, what are you buying the house for? If it’s your home, it’s very hard to beat that investment. If it’s a property you intend to rent out though, that’s not so clear cut case anymore at all.
Latest Answers