It is not often that you are put in the position where you can purchase a lake home for cash. The money is typically saved up over a period of time. It could also come from an inheritance or even prize winnings. No matter how you have been able to acquire the money, you can be sure that purchasing a new lake home with cash is probably your best option.
1. No monthly payments.
One big benefit of paying cash for your lake home is that you will not have a monthly payment to budget into your finances. You will have the amount of a monthly house payment freed up every month. This alone is a good benefit to pay cash.
2. No interest to pay.
When taking out a loan to purchase a lake house, you will also end up paying thousands in interest. When you pay for the home all at once, there is nothing to build interest on. Therefore, when you pay for it in one lump sum, you will pay a lot less than you would have.
3. Sellers love cash.
When a seller is faced with an option of waiting for money through a bank loan or a lump sum of cash from a serious home buyer, they will give the cash buyer a deal in order to receive a large amount faster.
4. Lower closing costs.
When a buyer purchases a lake home with cash, then the closing costs will be lower than what it would be when using a loan. You can even negotiate that the sellers will pay closing costs since you are paying in one lump sum of cash.
5. Housing market fluctuations will not affect you.
Since you are paying in cash, the deal is done. Those who use a loan to pay for a loan will be subject to the market fluctuations. These fluctuations affect house payments.
6. Closing time is much faster.
When you don’t have to be subjected to the forms that the bank requires and you don’t have to wait for the decisions, communications, or other aspects of including middlemen, then you can close on the home a lot faster.
7. Better financial standing when it’s your second home.
Yes, it was mentioned that you would not have a house payment for this home. But it is also a bonus benefit when this is your second home. It will cut the cost of having multiple homes. The payment that would have normally been paid every month will be used to pay bills for when you occupy the home and not when you are away.
Although there is a list of benefits listed here, there are plenty more. It is smart to pay for the home all at once should you be in the position to do so. You save money in so many areas that it is financially ideal to do so.