Taking out a Mortgage Instead of Buying a Property in Cash
Though purchasing a property outright with cash may seem like a good idea, there are plenty of reasons why getting a mortgage may be the fiscally smart thing to do. Tying yourself up to a real estate transaction may limit you down the road if other options or needs arise. For instance, if the home needs major repairs or renovations, you need to make sure you aren’t strapped for cash.
If you plan to sell your home down the road, you need to make sure you have enough cash to put down as a deposit on your new home. You could actually be saving less than the money may have earned, had you taken out a mortgage and used your cash towards other investments.
If you’re contemplating paying for a property in full versus taking out a mortgage, its important to assess which choice makes the most financial sense, which option will provide the greatest return on your investment, and gives you a bigger bang for your buck.