Comments on: Is it better to pay cash for a house or invest the money? http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/ A Weblog about My Cash Pay Advance Tue, 22 May 2012 22:34:26 +0000 http://wordpress.org/?v=abc By: paintingj http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6600 paintingj Fri, 12 Sep 2008 07:47:44 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6600 Pay Cash. The piece of mind of knowing that where you live won't be repossessed if you run into financial difficulties is worth it. We recently had a drastic drop in our income but did not have any fear of missing a house payment because we have no mortgage. Pay Cash.
The piece of mind of knowing that where you live won’t be repossessed if you run into financial difficulties is worth it.

We recently had a drastic drop in our income but did not have any fear of missing a house payment because we have no mortgage.

]]> By: TLIUALL http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6599 TLIUALL Thu, 11 Sep 2008 08:24:03 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6599 Ideally, you pay cash as you own the new house 100% when you move in. No paper works with mortgage lenders. You are free financially. If you insist on borrowing some $$$, make sure you get the higher return than the mortgage interest. Best Luck Ideally, you pay cash as you own the new house 100% when you move in. No paper works with mortgage lenders. You are free financially.

If you insist on borrowing some $$$, make sure you get the higher return than the mortgage interest.

Best Luck

]]> By: oil field trash http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6598 oil field trash Wed, 10 Sep 2008 22:57:36 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6598 You didn't say how much money you will have but to be realistic you need to realize that on average you will only be getting a return on your investments of about 5 to 8%. That may not be enough to make a mortgage payment. Also investments do not always turn out positive. All investments except for saving accounts have some risk and you could end up losing money. Some other things to consider. Will the purchase of a house for cash use up all of the spare money you have? It is not good to be without a emergency fund of at least 6 months take home pay. Have you considered a compromise where you make a large down payment and thereby keep your monthly mortgage payment smaller but still have money for an emergency fund and investment. Only you know your full financial situation (other income, taxes, etc.) and your tolerance for risk. I hope it works out for you. You didn’t say how much money you will have but to be realistic you need to realize that on average you will only be getting a return on your investments of about 5 to 8%. That may not be enough to make a mortgage payment. Also investments do not always turn out positive. All investments except for saving accounts have some risk and you could end up losing money.

Some other things to consider.

Will the purchase of a house for cash use up all of the spare money you have? It is not good to be without a emergency fund of at least 6 months take home pay.

Have you considered a compromise where you make a large down payment and thereby keep your monthly mortgage payment smaller but still have money for an emergency fund and investment.

Only you know your full financial situation (other income, taxes, etc.) and your tolerance for risk. I hope it works out for you.

]]> By: linkUS http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6597 linkUS Mon, 08 Sep 2008 18:01:57 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6597 There is no greater posession than a house paid off. If you own the house free and clear you will be able to live on less. You won't have to make so much money. Too many people have giant mortgages thinking that the tax write-off (the interest) is greater than no write-off. Not true, a giant mortgage forces people to make great wages with high income taxes. A house paid off is still a burden with insurance, taxes, utilities, upkeep and expansion. A house paid off may determine if you can live on $11 or $27 per hour; social security alone or if you must supplement. There is no greater posession than a house paid off. If you own the house free and clear you will be able to live on less. You won’t have to make so much money. Too many people have giant mortgages thinking that the tax write-off (the interest) is greater than no write-off. Not true, a giant mortgage forces people to make great wages with high income taxes.
A house paid off is still a burden with insurance, taxes, utilities, upkeep and expansion. A house paid off may determine if you can live on $11 or $27 per hour; social security alone or if you must supplement.

]]> By: georgesmerda http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6596 georgesmerda Sun, 07 Sep 2008 21:36:47 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6596 Hi, sweetie! There are two answers: 1) IF you can get an investment with a rate of return (ROR) that is higher than your interest, DO IT. 2) IF your interest appears to be more than your investment strategy can handle, perhaps it is better to pay cash. Tips: look into some funds that can actually do 20+% per annum. FLATX, FLTAX, LETRX, EWZ, EWW If you really have that money, invest it and live with the house payment for a few years. Rule of 72: say you are getting 18% per annum in investments return. 18 goes into 72 4 times. That's how many years it takes to double your money. If you get, say 36% per annum, then it would take you 2 years to double that cash. So.... be a wise investor and do your homework. It helps to get a financial advisor, but sometimes that means reduced earnings for you with absolutely no guarantees (pissing money down the drain). Go to Yahoo Finance and try one of those funds I just told you about. LETRX and EWZ ought to do fairly well: they're balanced with oil, wireless communications, and banking ADRs. Do your homework and pray for the right answer. Cheers! Hi, sweetie! There are two answers:
1) IF you can get an investment with a rate of return (ROR) that is higher than your interest, DO IT.
2) IF your interest appears to be more than your investment strategy can handle, perhaps it is better to pay cash.
Tips: look into some funds that can actually do 20+% per annum. FLATX, FLTAX, LETRX, EWZ, EWW
If you really have that money, invest it and live with the house payment for a few years.
Rule of 72: say you are getting 18% per annum in investments return. 18 goes into 72 4 times. That’s how many years it takes to double your money. If you get, say 36% per annum, then it would take you 2 years to double that cash. So…. be a wise investor and do your homework. It helps to get a financial advisor, but sometimes that means reduced earnings for you with absolutely no guarantees (pissing money down the drain). Go to Yahoo Finance and try one of those funds I just told you about. LETRX and EWZ ought to do fairly well: they’re balanced with oil, wireless communications, and banking ADRs. Do your homework and pray for the right answer. Cheers!

]]> By: Frank Castle http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6595 Frank Castle Sun, 07 Sep 2008 19:35:15 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6595 If your interest rate is for example 20% but your business can give you a return on your investment of 21% then it's better to invest in your business. If your interest rate is for example 20% but your business can give you a return on your investment of 21% then it’s better to invest in your business.

]]> By: jean http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6594 jean Wed, 03 Sep 2008 01:19:33 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6594 compare the interest rate if you take out a loan to the rate of return if you invest the money. If interest for the loan is lower than investment, get a loan; otherwise, pay cash :) compare the interest rate if you take out a loan to the rate of return if you invest the money. If interest for the loan is lower than investment, get a loan; otherwise, pay cash :)

]]> By: -j. http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6593 -j. Sat, 30 Aug 2008 15:07:34 +0000 http://www.cashpayadvance.org/cash-pay/is-it-better-to-pay-cash-for-a-house-or-invest-the-money/#comment-6593 You have to compare the interest payable on the mortgage to the interest receivable on the investment. If mortgage rates are high, you're probably better off using the cash to make the house payment, thus reducing the interest you'll have to pay on your mortgage. If mortgage rates are very low, you may be better off investing the cash and earning a little extra income. You have to compare the interest payable on the mortgage to the interest receivable on the investment.

If mortgage rates are high, you’re probably better off using the cash to make the house payment, thus reducing the interest you’ll have to pay on your mortgage.

If mortgage rates are very low, you may be better off investing the cash and earning a little extra income.

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