Buying house with cash

[Anonymous]

Anonymous wrote:

Anonymous wrote:If it's a hot market and having an all cash offer allows you to waive the financing contingency and beat out other offers which require a mortgage.

This, and nothing stops the buyer from getting a mortgage -- after closing

You can get the mortgage before closing. The offer just says you don’t need financing.

[Anonymous]

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

Why would you lock up millions when you could potentially (if you are very rich) get a low interest loan from a bank that you have a relationship with?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

You are wrong. Wealthy people take out mortgages, while those with less money pay in cash. Gates, Bezos, Musk, Zuckerberg, and Buffet all use mortgages even though they have enough cash to pay outright. I don't know any billionaire who supports paying in cash.
Perhaps using cash is something that middle class people or the poor millionaires next door do to escape debt. But wealthy people never pay with cash.

Buffet lives in 170k house bought in the 1970th.
Most of the people you listed have multiple properties, I don’t think you know what you’re talking about.

And you think it’s the only property Buffet own? Don’t be stupid?
What does multiple properties have to do with paying in cash?

https://finance.yahoo.com/news/why-billionaires-elon-musk-mark-150100026.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

You are wrong. Wealthy people take out mortgages, while those with less money pay in cash. Gates, Bezos, Musk, Zuckerberg, and Buffet all use mortgages even though they have enough cash to pay outright. I don't know any billionaire who supports paying in cash.
Perhaps using cash is something that middle class people or the poor millionaires next door do to escape debt. But wealthy people never pay with cash.

Buffet lives in 170k house bought in the 1970th.
Most of the people you listed have multiple properties, I don’t think you know what you’re talking about.

And you think it’s the only property Buffet own? Don’t be stupid?
What does multiple properties have to do with paying in cash?

https://finance.yahoo.com/news/why-billionaires-elon-musk-mark-150100026.html

Okay, internet warrior.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

You are wrong. Wealthy people take out mortgages, while those with less money pay in cash. Gates, Bezos, Musk, Zuckerberg, and Buffet all use mortgages even though they have enough cash to pay outright. I don't know any billionaire who supports paying in cash.
Perhaps using cash is something that middle class people or the poor millionaires next door do to escape debt. But wealthy people never pay with cash.

+1

it's Boomer/Dave Ramsey mindset to pay in cash

[Anonymous]

Anonymous wrote:If it's a hot market and having an all cash offer allows you to waive the financing contingency and beat out other offers which require a mortgage.

You can still get a mortgage if you waive the financing contingency. You just have to prove you can pay in cash (or most sellers will make you prove it, anyway). No one is going to stop you (or care) if you come to closing with a mortgage. So if you have the cash to buy a house, then yes, it makes sense to offer with no financing contingency. But that doesn't really need to play into whether or not you want to actually finance the house.

[Anonymous]

I did something stupid ten years ago. I retired and paid off my mortgage. If I kept it invested, I would be worth more today.

[Anonymous]

If you have a healthy brokerage account balance at for example IBKR, you can borrow a large fraction of the balance on margin, withdraw the cash, and buy a house with the cash. Margin interest rates are lower than mortgage rates and interest is fully deductible unlike a mortgage. Really. And if your house happens to be on the beach in Florida, you can skip the super expensive hurricane insurance that your mortgage lender would force you to buy. Of course you will need the stomach to be self insured. It helps if the land is the majority of the value of the property.

[Anonymous]

We bought when the market was hot. Our all cash offer was lower than the highest bid but we won out because we could close in 10 days.

[Anonymous]

Buy title insurance

[Anonymous]

Anonymous wrote:

Anonymous wrote:Under what circumstances does it make sense to buy a house with cash (no mortgage)? How would you decide, assuming you have the cash to afford the house?

Always. Anyone saying otherwise has ulterior motives or is an agent.

Never unless the rates are so high they’re higher than what you can return in the market. Remember, taking risk with someone else’s money is always advisable and creating money doubles money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

You are wrong. Wealthy people take out mortgages, while those with less money pay in cash. Gates, Bezos, Musk, Zuckerberg, and Buffet all use mortgages even though they have enough cash to pay outright. I don't know any billionaire who supports paying in cash.
Perhaps using cash is something that middle class people or the poor millionaires next door do to escape debt. But wealthy people never pay with cash.

+1

it's Boomer/Dave Ramsey mindset to pay in cash

Let me guess you also finance cars, Jewelry and furniture.

[Anonymous]

Anonymous wrote:Buy title insurance

why?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buy title insurance

why?

Holy crap! This is a question! For one, because it’s cheap.

Mortgage companies have way more money than you do and they require title insurance because scammers prey on people who buy in cash for the simple fact that they do less due diligence than mortgage brokers

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Because you are rich and don't need a mortgage. That's the most common answer. People who advocate for getting a mortgage to leverage low interest rates are not rich. They are still trying to become rich.

You are wrong. Wealthy people take out mortgages, while those with less money pay in cash. Gates, Bezos, Musk, Zuckerberg, and Buffet all use mortgages even though they have enough cash to pay outright. I don't know any billionaire who supports paying in cash.
Perhaps using cash is something that middle class people or the poor millionaires next door do to escape debt. But wealthy people never pay with cash.

+1

it's Boomer/Dave Ramsey mindset to pay in cash

Let me guess you also finance cars, Jewelry and furniture.

Those don’t appreciate; real estate generally does.