be economical

First of all, of course, it is more economical. Secondly, when we buy a house, the mortgage interest is relatively low. If there is a provident fund, it will be even lower. And we also know that, especially when buying the first house, the basic down payment is generally about 30% of the total amount. If you apply for a loan, you might as well pass the remaining house payment.

② Anti-inflation.

Money has been depreciating. Buying a house with a loan is to overdraw your future achievements in advance to enjoy your present life, and you may earn more in the future than you do now. In addition, the annual inflation rate is about 10%. If the mortgage interest rate of about 4% is deducted, it is still cost-effective to buy a house with a loan.

③ Meet the emergency needs.

At present, most families are working families, and their monthly income is relatively fixed. If you spend all your savings on buying a house, you will panic in case of an emergency. After all, having cash in hand is much more practical than having no money. If you can, you can also use idle funds to make other investments, so as to obtain other income.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"