Owning a home is something almost everyone wants to do at some point in their life. Nothing can compare to knowing that the house you live in is yours and that you can do what you want with it. No rent, no answer to a landlord, none of that…
While it’s great to own a home, many people make a hasty decision to take out a huge mortgage on their home instead of paying it off up front. This is understandable because not many of us have $100,000 available to purchase a home.
But for those who choose to save the money and buy their home with cash, the rewards are plentiful. Not only is it cheaper, but it will save you from being chained to the bank in a lengthy mortgage scheme that you might end up wanting to opt out of before it’s paid off.
Let’s take a look at how you can avoid a mortgage and buy your next home up front, with cash.
Frugality is the name of the game
While it’s very likely that everyone would buy their house with cash if they could, almost no one does. This is because most people simply lack the discipline to save.
Now, if you make $20,000 to $30,000 a year, you’ll have to wait a long time to buy your own home, even on the bare minimum.
But, if you’re someone who makes $50k or more a year, or you also have a spouse who makes as much as you do, chances are you’ll be buying your own house with cash, in a couple of years.
If you can save just a couple of thousand a month over a period of 5 years or more, you’ll be in the right range to buy a nice home for yourself.
Benefits of buying with cash
The benefits of buying your home with cash are generally not available to those who have a sizeable mortgage to worry about. For example, without a mortgage payment, you can pump more money into your retirement plan, allowing you to retire earlier or have more money to spend when it’s time to call it quits.
You can also invest your extra money in some type of money-making scheme, such as the stock market, start-ups, or bonds. As long as you know what you’re doing, this can become a handy stash of money in case you need to pay for an emergency, send your kids to college, or support your family in case something happens to you.
Buying a home with cash is hands down the smartest way to buy a home, it just takes some discipline when it comes to saving the money.
Don’t waste your time and resources going it alone or working with an amateur agent, contact a trusted real estate agent today and put yourself in good hands.