Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Buying with cash vs. mortgage

Options
  • 02-01-2018 1:59pm
    #1
    Phantom1234
    Registered Users Posts: 2 ✭


    After living relatively frugally, renting crappy apartments, working very hard for 15 years and some good luck, my partner and I are lucky to be in a position to potentially buy a home with cash savings/liquidating investments in the next year or so (or at least up to 80% of the house price). The prospect of mortgage free living or a shorter mortgage term is very appealing but so is the idea of using banks money to get the capital appreciation over long term and to keep investing and growing our nest egg. Does anyone have any advice/experience in this area? If you could buy a new home tomorrow, and you had the cash to do so, what % would you go in and why?


Comments

  • Options
    #2
    f@steddie
    Closed Accounts Posts: 68 ✭✭f@steddie


    If you get a mortgage you would be borrowing at say 3% to invest your money elsewhere. You would need returns well in excess of the 3% for it to be worth your while. There's no guarantee of that.

    My advice is to keep a rainy day fund and to use the rest of your money to buy the house.

    Well done by the way.


Advertisement