issue by Sean : Deal With the fiscal cliff and during 2013 the economy would be prudent to invest in a house
With interest rates so low, people buy houses in the Central Valley, California, as a fou.L asset inventory current sucks and the houses are very expensive compared to the year dernière.J ‘have cash 188k and I can buy a property here in the valley, but I do not want to buy a property at this time and in 2013 they again fall down. How long are the interest rates remain low? Is the tax case related to real estate? It would be prudent to buy a home in time to invest? Excuse my punctuation. I write in haste. Thank you Best answer:
This will be long, but since you’re about to spend 188K, you can take a few seconds to read this. When you buy this house, somewhere in the year that you own the property will decrease the value to return. No body can predict the future, so if you can afford to buy and lock onto 3 percent something to do, but some drawbacks. Cash Advantage # 1: no worries. The process of qualifying for a mortgage is a chore, even if you show that you have important assets and incomes. You must have created a credit for a lender to be able to assess its risk to you, but with money, you are at no risk. You save time with paperwork and, in theory, the procurement process will be faster. For a seller, a buyer this species may have an advantage over those that are related to the participation of a mortgage lender. Cash Advantage # 2: low. You may be able to negotiate a better purchase price when you have cash to show, but there are many other areas you can save money. Closing costs may be less, and without a mortgage, you do not have to worry about paying points. Over time, most of the savings from the interest. On a mortgage of $ 250,000 at 7% over 30 years, you could pay almost $ 350,000 in interest. Pay $ 250,000 in advance and save your money. cash advantage 3: no payment at retirement. With mortgages thirty years is the norm, families waiting before buying a home may find they still have a balance to pay their lender when they retire. During retirement income could be significantly reduced, which makes it more difficult to pay mortgage payments. Those who have a mortgage should do what they can to eliminate the payments before retirement, but if you pay cash, you’ll never have to worry about changes in your future income affect your ability to keep your home. cash advantage # 4: You’re not a slave. I do not fully agree with the idea that debt is slavery, but when you owe money to someone else, you definitely lose some of your freedom. For example, a Philadelphia landlord has been notified by its lender, Wells Fargo, which may not even own the mortgage due to the securitization to increase its insurance covering the full replacement value of the home rather than market value of the house. The charges would have added $ 500 to their monthly bill. Although the owner might be able to correct the situation, without a mortgage, Wells Fargo was not harassment. advantage of mortgage 1: greater financial reward. It comes with a risk, but if you intend to stay in the home for several decades, and you have room, your financial gains could be greater if you finance the purchase. If after ten years, the value of the home increases $ 200,000, everything that belongs on the rise, even if you do not own the house outright. You could even increase this cash if you need money for any reason. The other dimension of this is that if the value of the home decreases, you are on the hook for the loss, and in many cases, you might find yourself under water, due to the lender more than your home is worth. Mortgage Advantage # 2: buy a bigger or better house. Even if you have the opportunity to buy a house with the money, you may still want to choose a mortgage. If you expect to have more money on the way, you can use your current assets to help pay for a bigger house, if it is something that is important to you. 188K with cash today, for example, you can either buy a house without a mortgage or use part or all of the money for closing costs and a down payment. As you would expect more income in the future to pay the mortgage, you can use the cash today to your advantage. advantage of the mortgage 3: obtaining tax relief. Yes, it is true that at least as of today, there is a tax deduction for mortgage interest. This is not such a big advantage that most people believe, however. You get only a portion of each dollar of interest you pay and the benefit is limited by income. Even with a salary of middle class, you might be prevented from taking this deduction. Of course, if you pay cash for a house, you pay no interest, which is much better than paying interest and get some of that back the government. advantage of the mortgage 4: asset diversification. Having money to spend is not the only consideration. If the home you want 178K cost you $ 188,000 in cash ready to go, you’ll be left with only $ 10,000 for all of your other savings needs, including an emergency fund. Using all your money to buy the biggest house your money can buy is to put all your eggs in one basket. If you have enough money to buy a house requires only a portion of your property, you can always consider your statement of financial security, but once you transfer all your cash savings in an illiquid asset such as a home, you may have trouble getting cash when you besoin.Prenez care
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