Buy house all cash or take a loan?
Would you buy a house all cash if you could, or would you still do 20% down and take a loan for the rest and diversify in stocks,etc? I see a lot of people in the bay area make these all cash no contingency offers, and that makes me wonder if I’d do that even if I could TC 278k
How confident are you that your principle could generate a higher rate than your fixed (I assume) jumbo loan? Also a few underwriters will consider RSUs as income nowadays so if you’re not working for an unprofitable softbank investment, why not?
If you can get a loan for less than 4% rate, it makes sense to take the loan.
Can you please elaborate on the 4%?
Yes 4% seems high. 3% looks good
Flex baby flex.
I’m not saying I have the money to buy all cash, I’m trying to understand the motivation/reasons of the people making those all cash offers
It helps some people get their offers accepted in a sellers market. Also they may be doing it to limit risk in the event of a recession and loss of job
My thinking is those who buy with all cash *is* diversifying
You can buy with all cash? You rich bastard.
1% down, put rest of 19% into ICOs
Flyhomes.com they help you make a cash offer and refi afterwards.
This is super interesting, now cash offers make sense. I recently saw a house I was tracking sell for 1.2M all cash, and I was thinking who’s walking around with that kind of cash!!!
Earlier chinese used to buy with all cash. Now they have stopped too. Now its mostly flippers who buy all cash.
Owning a home outright is good security. If you can afford to do it while also investing, then go for it. If you are paying cash in lieu of investing, then do not.
Cash offers are just for bidding lower and making the offer attractive. I bet most of them end up taking a loan and park the cash at better instruments once the offer closes.
I can’t wait for the housing bubble to burst in the Bay Area/Seattle again. It’s gonna be glorious watching these people with fat RSU stacks crying because they have to pay 1m+ for a place that ain’t shit
Then I get to scoop one up with my fat RSUs, but then the big Earthquake happens and I’m naked and shitting on front my lawn whilst bawling my eyes out on CNN as my dog is dying under the rubble that was my home. You hard yet?
This got dark real soon