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Buying with cash vs. mortgage

  • 02-01-2018 12:59pm
    #1
    Phantom1234
    Registered Users, Registered Users 2 Posts: 2 ✭


    After living relatively frugally, renting crappy apartments, working very hard for 15 years and some good luck, my partner and I are lucky to be in a position to potentially buy a home with cash savings/liquidating investments in the next year or so (or at least up to 80% of the house price). The prospect of mortgage free living or a shorter mortgage term is very appealing but so is the idea of using banks money to get the capital appreciation over long term and to keep investing and growing our nest egg. Does anyone have any advice/experience in this area? If you could buy a new home tomorrow, and you had the cash to do so, what % would you go in and why?


Comments

  • #2
    f@steddie
    Closed Accounts Posts: 68 ✭✭f@steddie


    If you get a mortgage you would be borrowing at say 3% to invest your money elsewhere. You would need returns well in excess of the 3% for it to be worth your while. There's no guarantee of that.

    My advice is to keep a rainy day fund and to use the rest of your money to buy the house.

    Well done by the way.


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