Purchasing property, loan vs. cash

Buying a #house or #condo: Is it better to get a loan or buy with cash?

Advantages of #loaning


You don't have to wait to save up enough money to meet the property's price; you can own property using credit.

You can invest the cash in other investments that offer higher returns than home loan interest.

If you invest in rental properties and have tenants, you don't have to pay all of your monthly mortgage payments.

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Disadvantages of #loaning


You must prepare loan application documents.

You must pay interest to the bank.

There are other loan costs, such as property appraisal fees (some are free), a 1% mortgage registration fee of the loan amount, and fire insurance.

You are in debt with the credit bureau, which will be considered a liability if you apply for other loans.

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Advantages of #cashing


You don't have to prepare complicated loan application documents.

You don't have to pay interest to the bank.

You don't have to pay the 1% mortgage registration fee of the loan amount when you transfer ownership at the Land Department.

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Disadvantages of #buyingwithcash

If you don't have enough cash, you may experience a lack of liquidity.

You lose the opportunity to invest your cash in other investments that offer higher returns than home loan interest.

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Article source: DD Property: https://bit.ly/40qZQ8E