home purchase question

[darstar]

Originally Posted by sterlinggirl

Buy a house with cash and enjoy the security of knowing that you won't lose the roof over your head if the market tanks or you lose your job.

For a cash deal on real estate these days, it isn't hard to get a 5% discount over the amount they'd accept if your offer was contingent on financing.

You should be able to do better than 5 per cent. cash rules, once you cut out the middle man.... If you are going the cash route , shop wisely , look for deals , they are out there. I sold my last house for cash , and I took a considerable discounted offer. No broker , no agent, just the tytle company, they closed for a few hundred bucks , and , my house was no cheap dump. It was lakefront, 4,000 sq foot designer home.( restored ). There is no better time to buy with cash...I encourage it , but , let your cash work...for you.
The savings by get a deal for cash , the savings on loan interest, closing costs , on and on , can turn a profit for you...in a few short years. ( Most people sell/buy in 5 to 7 years anyway )

[wheelsup]

I don't know of any retirement vehicle where you can place $200k in right off the bat, anyone? Is that even an option?

[ChunkyMonkey]

You shouldn't make this decision in a vacuum. You should look at your entire financial picture. Do you have an emergency fund? 8 months to 1 year would be good. Fund that first. Next, decide if you are planning to be in the house long term (over 10 years+). If it is 5 years or less, you shouldn't even be buying a house.

Next, begin funding any short to mid-term goals: vehicles, vacation, school, etc. Then decide how much is left. You definitely don't want to be cash poor as there will be lots of maintenance issues that might creep up.

Also, you don't have to do all or nothing. You can put 70% down and keep a low mortgage, for example. One advantage is that interest rates are the lowest in years. Definitely get a fixed rate though and make sure your loan provider has no prepayment penalty. You can always pay-off the house at a later time point when you have more cash to play with.

[darstar]

There are lots of investments out there...200K will give you lots of options. because cash is King these days....use the money to make money , thats the bottom line. Do not use the 200K to " better your lifestyle". If you can use it to get a 50 per cent discounted home ( foreclousure or like ) , do it.