Reply to Beyond Frustrated in Vienna market

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Op here - I am not a troll. I am not sure how me venting about the TOV market devolved into a discussion about my finances. We have an excellent financial advisor and he has signed off on our plan. We are just fine financially- I just have to set my budget somewhere for housing and that is our line. Of course we could take on a mortgage but we don't want to. 
My original complaint remains that I just can't believe the prices and competition happening for decent TOV homes when we are this far from DC. That's all. [/quote]

Mmm hmm.

Ok. Hey PP who is sick of the term "troll" being overused ... looks like here it wasn't. This whole thing makes zero sense. "Ugh, I can't afford a house in TOV because our budget is 2M -- when we look at houses in that range they get bid up! Oh, and our 2M budget is cash. Don't want to take on a mortgage. Our "excellent financial advisor" thinks it's a great idea to sink millions of cash into a house and not take on a mortgage. So whaaaaa ... can't afford a house! I just can't believe these prices!! And the competition happening! A house we liked listed at 2M got bid up to 2.2M! How are we supposed to afford that when we only have 2M in cash!!!" [/quote]

I tend to agree. I know many people around here make cash offers but the vast majority refinance into a mortgage after closing (or even before) via their private banking preferred rates / relationships. You don’t lock up $2M in a slowly appreciating, relatively illiquid asset when the S&P500 doubles every 7 years historically and you could have $4M in 7 years - or more at the rate this market is going.  [/quote]

I think there's probably a fair number of not-very-savvy people who might have $2 or $3 million, and who hear about "all-cash" offers and high mortgage rates (for the recent past), and think that it's best to not have a mortgage. "All-cash" is really one of the most deceptive terms out there, because it leads the not-very-savvy to think that people aren't getting mortgages or portfolio loans, when in fact it simply means that they don't need a financing contingency.[/quote]

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