Cash is King...Or Is It When Buying A Home

By
Real Estate Agent with Century 21 Award CalBRE 01730187

Cash is King...Or Is It When Buying A Home

Hi and welcome to another two minute Tuesday.
If you've seen my previous videos, you know I bring valuable topics to homeowner,
home buyers & home sellers. Check back every week to see a new video.

 

They say “Cash Is King”....or is it?

Should you purchase your home for all cash, or is it better to get a mortgage?

In 2018, 23% of home buyers paid cash for homes!! That’s an amazing statistic. And in my market of Orange County CA, 29% of homes have no mortgage at all.


ADVANTAGES:

Easy to get offer accepted.
Fast transaction (especially for the seller).
No appraisal or loan contingencies are required which will lengthen the sale if you’re getting a mortgage.
And there's no Credit check required.
Alternatively, You could use a large portion of your cash and get a small mortgage with a favorable rate and no PMI which would preserve some of your cash.


DISADVANTAGES
You could use all of your money to make a purchase - but no cushion for repairs, emergencies.
You can't diversity or leverage your money for other investing
Your Money is tied up and not liquid...but you could get a home equity loan,HELOC or reverse mortgage if fast cash is needed.

 

ALTERNATIVE to using ALL of your CASH?
Your money could be diversified into other investments - stocks, mutual funds or a business opportunity.
Buy multiple houses or multi-unit building. Everything from a duplex to an apartment building.
Another option is to buy the home for cash and then finance it after recording - takes advantage of your cash position to make the purchase, then gets your cash back when you get a mortgage.

So here's my warning...
Before you make any decisions about using all cash for a purchase, talk to your financial consultants, CPA, CFP, or Aunt Betty to satisfy yourself that you are making the right decision.


If you found this information helpful, give it a like and share it with your friends on social media.

 

Check back next week for another episode of Two Minute Tuesday...
And I'll see you on the next video.

 


 

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John Alesi - REALTOR®

949-510-2154

CENTURY 21 Award

Search for homes at: Your OC Home Search website

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CalBRE# 01730187

Copyright 2018 by John Alesi. Text and images may not be copied with out consent.

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Rainmaker
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

A loan with a good amount down is just as good in m yopinion

Mar 06, 2019 05:34 PM #1
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Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

You are a smart cookie to keep consistent with your videos. I keep reading that it's so important to keep adding new content to our YouTube channels on a weekly basis. Keeps us busy trying. :) 

Mar 07, 2019 07:04 AM #2
Rainmaker
283,052
John Alesi
Century 21 Award - Mission Viejo, CA
(Orange County California Real Estate)

Debb Janes EcoBroker and Bernie Stea JD Thanks! I'm really working on adding valuable content to  my channel. I hope you find it interesting. And I would appreciate any suggestions for upcoming video topics.

Mar 07, 2019 01:26 PM #3
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Rainmaker
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John Alesi

(Orange County California Real Estate)
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