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Oxygen
2012 Aug 14, 3:20am
Oxygen
2012 Aug 14, 3:20am
Only thing I can add that hasn’t been said already. If this person buys with a cash offer - would they have sufficient reserve? If they drain their savings close to zero and then something unexpected comes up - then what?
he wont be "house poor" and his credit is good enough to float funds on a 0%APR credit card
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Assuming someone has the cash and wants to buy a house now (lives at parent's home for free while building wealth), in this low interest rate economic environment, does it make sense to pay with only cash? in other words, does it make sense to take out a mortgage?
other parameters in this hypo situation
- 150k salary, single, 27
- maxed out 401k/IRA, no student loan debt, or any other debt
- health insurance fully covered
- home prices won't drop in this local market
- won't be "house poor" if he buys a house
i'm sure this is a multifaceted answer that depends on multiple factors...
#housing