Planning to Buy a house in cash? Consider these pros and cons before you

Buying a house in cash is becoming more and more common these days. If we look at the statistics, then the results are astonishing. Within the last one year, there has been a 6% rise in the number of buyers who bought their house for cash, according to the National Association of Realtors. If you are also looking to buy a house in cash , then you must be aware of the pros and cons related to it. Let us have a look at them:

Pros – 1.

Financial Security – Owning a property gives you a sense of security. If you choose to mortgage a property or plan to get a bank loan for the house, then you are always at a risk of foreclosure in case you miss your payments. Buying a house in cash can get you rid of all this, as you already own the house. Even in case of any financial downfall, you can be sure that you have a place to live that is going to be yours forever.

2.Ease of Buying – Buying properties that are available for sale in cash is a quick and efficient procedure. People who are in need of quick money tend to sell their property for cash. So, if you are in search for quick property, then you must consider buying a house in cash.

3.Credit history – if you plan to buy a house on loan, then the bank would need a good credit history. For people who have poor credit history for any reason, then you cannot get a loan. Hence, buying a house in cash can be the best option for you under such a situation.

Cons -

1.Tax Disadvantage – the most negative part of buying a house in cash is that you do not get tax saving advantage. In United States, mortgage interests are deductible on income tax. Hence, if you have a good source of income and fall under high tax bracket, you cannot benefit from these deductions if you buy a house in cash.

2.Liquidity – if you are limited on cash, then this is not the option for you, rather mortgage is the best option for you. It would free up your cash, so that you can invest and make more money

Above mentioned are some of the pros and cons of buying property in cash that you must consider. Depending upon your priority and your financial options, you can make your choice.

LI Cash Buyers are known to buy and sell house for cash in Long Island . Log on to www.licashbuyers.com to get in touch with them.