U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 12-09-2012, 02:19 PM
 
4,803 posts, read 8,456,545 times
Reputation: 8081

Advertisements

Right now I have no debt and I rent. When I retire I was going to set aside around $200,000 to pay cash for a home, maybe at an auction. If you were looking to buy a home for that amount, would you pay cash if you had it or would you take out a mortgage and invest that money some other way?
Quick reply to this message

 
Old 12-09-2012, 03:06 PM
 
26,362 posts, read 56,625,872 times
Reputation: 15442
Really depends on your overall situation -- imagine if you have me pension or 401k it would be might stupid to have a fully paid off house and no other sources of income vs if you have a generous pension backed by some organization that can't weasel out of / some unit if government BIG DIFFERNCES...

For most people the cheapest loan you can ever get is a mortgage for a home you live in and the kind of investment opportunities that you forego by not having a $200,000 pile of dough are pretty hard to turn your back on!
Quick reply to this message
 
Old 12-09-2012, 04:12 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
22,513 posts, read 37,265,411 times
Reputation: 19313
If you are going out far enough to pick up something for that little, you will just have the tax
payments/insurance and be able to live on your retirement. If you get a loan you can deduct
the interest but you may not need that and it could be eliminated in the future. I have thought about that too, in 10 years or so when I will be in that situation, and will most likely do a compromise. Put down about 50-60% and borrow the rest, keeping some liquid assets
that earn a little interest but are easy to get to.
Quick reply to this message
 
Old 12-09-2012, 04:38 PM
 
Location: The Triad (nc)
19,974 posts, read 43,762,837 times
Reputation: 18206
Quote:
Originally Posted by kanhawk View Post
Right now I have no debt and I rent.
When I retire I was going to set aside around $200,000 to pay cash for a home...
How long will it be until you retire?
And do you KNOW where you'll want to live then?

Quote:
If you were looking to buy a home... would you pay cash if you had it
This would require that the purchase amount is no more than 10% of total assets.
If so... then the question comes down to investment return from alternate uses vs security.
There is still a LOT to be said for the security of owning your home.

Quote:
or would you take out a mortgage and invest that money some other way?
There are two basic reasons to have a mortgage:
1) You have no choice but to buy that home with a long term loan (or)
2) You have a better use for the cash (the investment return from alternate uses is better)
Quick reply to this message
 
Old 12-10-2012, 11:51 AM
 
Location: Washington DC
487 posts, read 1,033,494 times
Reputation: 514
Buy the house for cash.
Quick reply to this message
 
Old 12-10-2012, 11:53 AM
 
Location: The Crocheted Cauldron
32,073 posts, read 27,740,246 times
Reputation: 52931
I would purchase a nice but modest home with a wee bit of property with cash and invest the rest.
Quick reply to this message
 
Old 12-12-2012, 08:39 PM
Status: "Optimistic" (set 1 day ago)
 
3,147 posts, read 3,729,318 times
Reputation: 2383
I do not believe in putting all of my eggs in one basket. I would invest half in buying a nice cooperative in Brooklyn Heights or Prospect Heights. I would put $20,000 in a high interest savings account, aggressively invest $10,000, moderately invest $60,000 and have fun with $10, 000.
Quick reply to this message
 
Old 12-12-2012, 11:51 PM
 
1,742 posts, read 2,377,209 times
Reputation: 1162
Quote:
Originally Posted by goodlife36 View Post
I would put $20,000 in a high interest savings account,
I don't think those exist these days...
Quick reply to this message
 
Old 12-13-2012, 09:24 AM
 
3,025 posts, read 5,905,211 times
Reputation: 3143
To me it makes sense to go ahead and get a mortgage with the supper cheap rates out there. Put in a decent down payment and try to get one around 3% or less (I've seen them). Shouldn't be too hard to safely get 4% or more on your money if placed with an experienced broker or planner.
Quick reply to this message
 
Old 12-19-2012, 09:34 AM
 
Location: Baltimore
1,727 posts, read 3,636,812 times
Reputation: 1149
Money is very inexpensive now as rates are about a 100 basis points over t bills. I would say mortgage the house but it depends on your individual needs.
Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $99,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

2005-2016, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top