15 May, 2022

Purchasing a home cash might seem like the dream but it can have its pro’s and con’s. People often feel more secure when purchasing a property in cash because the responsibility of having a bond repayment can be stressful at times especially because it’s over a longer term.

Another benefit of using your money to purchase a property cash is owning the property from the start and saving on interest payable. Keeping this in mind, you also need to consider the disadvantages of purchasing your property with your saved up cash. People often use their saved up money to purchase a property and by doing this, it limits their future investment opportunities.
Think about it this way, when you use your money to purchase your property cash, you are putting all your cash in one asset while getting a home loan not only allows you to invest in a property but you can also use the cash for other investment purposes such as shares or fixed interest investments. 

You also have the option of purchasing a property and renting it out and where in some cases where the prime interest rate drops, the rental amount you receive can potentially be more than your monthly repayment. This allows you to not only pay your monthly repayment but you will also have additional money covering your levies, rates and taxes, etc. 

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