When buying a house, should you choose full payment or loan? What are the advantages and disadvantages?

Comparison of the advantages and disadvantages of buying a house with a loan and buying a house with full payment

Want to know whether it is better to buy a house with a loan or with full payment? It seems that you must have enough financial strength to buy a house in full. But even if you can buy a house with full payment, you might as well consider buying a house with a loan. If you buy a house with a loan, you can use the remaining money to invest or do other things you want to do. There are both loan purchases and full payment. You might as well understand and compare the advantages and disadvantages of each to see which way of buying a house is more suitable for you.

Advantages of buying a house with full payment

1. Less expenditure

Although the first payment is high, judging from the total amount of money to buy the house, it can be exempted Various handling fees, bank interest, etc. Moreover, the one-time payment can be negotiated with the developer to further save the purchase price. Providing certain discounts for one-time payment for commercial housing has basically become a unified preferential activity for real estate developers, but the discounts are different. For example, if you purchase a house with a total price of 1 million yuan and make a one-time payment, the developer will give you a discount of 30% (93% off). This alone can save 30,000 yuan in house purchase expenses.

2. Simple process

Buy a house with full payment and sign a purchase contract directly with the developer, saving time and convenience. For those who purchase a second home, not only do they avoid the expense of rising expected annual interest rates on loans, but they also save time and energy in dealing with banks.

3. Easy to sell

From an investment perspective, it is more convenient to resell a house that has been purchased with full payment. It does not have to be subject to bank loans. Once house prices rise, it is faster to sell the house for cash. Exiting is easy. Even if you don't want to sell, you can still get a mortgage from a bank when you encounter financial difficulties.

Advantages of buying a house with a loan

1. Low investment

Purchasing a house through a mortgage loan seems to have become a common phenomenon. A loan, that is, borrowing money from a bank to buy a house, allows you to buy your own house without spending a lot of money right away. Therefore, the first advantage of taking a loan to buy a house is that you can buy a house with less money.

2. Capital activities

From an investment perspective, home loan buyers can invest their funds separately, such as taking out loans to buy houses for rent, renting out loans, and then investing in other projects, so that the funds More flexible to use.

3. Low risk

A mortgage loan is to borrow money from the bank to buy a house. In addition to the home buyers caring about the advantages and disadvantages of the house, the bank will also review it. In this way, the insurance of buying a house will be improved.

Disadvantages of buying a house with full payment

1. High pressure

Purchasing a house with full payment at one time will become a problem for those buyers with a weak economic foundation. No small burden. If you don't have sufficient funds, the one-time investment in buying a house is too large, which may affect the buyer's other investments.

2. Large variables

For most of the properties on sale for free, buyers choosing to make a one-time payment will increase the risk of buying a house. If you choose a one-time payment, each property will require the buyer to pay all the house payments during the pre-sale stage and sign a "Commercial Housing Sales Contract." However, during the transaction process, many pre-sale properties have the problem of incomplete five certificates. Although the sales staff promised to complete the procedures within a certain period of time, for home buyers, it is full of unknown variables. Among them, the biggest problem It is “difficult to register”.

3. The risk is high

For those who buy off-plan houses, if the developer fails to deliver the house on time, or due to insufficient project funds and other reasons, the delivery cannot be completed or the project may even be unfinished. ”, then the home buyer who has paid the full payment may lose more interest, or even lose everything.

Disadvantages of buying a house with a loan

1. Heavy debt

If you buy a house with a loan, the buyer will have to bear a heavy debt, which is not easy for anyone. For commercial loans, the down payment for the first home is at least 30%, and the expected annualized interest rate is at least 10%. The down payment for the second home is at least 60%, and the expected annualized interest rate is at least 10%.

2. The process is complicated

Another problem with buying a house with a loan is the complicated procedures. At the same time, due to the current tight bank loan quota and strict approval process, the waiting time for a loan can be as long as half a year. The loan has lengthened the entire house purchase time.

3. Difficult to sell

Because the property itself is used as a mortgage, it is difficult to sell the house again, which is not conducive to home buyers exiting the market.

I think that if you have spotted a house and want to live in it for a long time and will not make any other plans in the short term, you can choose a suitable way to buy it with a loan, and if you have the funds If you are rich enough, the house you are interested in is absolutely reliable, and buying a house with full payment is also a good choice. This is mainly a personal choice. Some people may think that it is good to buy a house with a loan, but some people are just not willing to take a loan to buy a house. They must save enough money to buy the house in full.

Is it better to buy a house with full payment or with a loan?

Is it better to buy a house with full payment or with a loan?

When buying a house with full payment, not only is the process of buying a house simple, but the house also has no Mortgage, easy to sell.

1. Offers discounts. Although the initial payment is high, judging from the total amount of money spent on buying a house, various handling fees, bank interest, etc. can be waived. Moreover, the one-time payment can be negotiated with the seller or developer to further save the purchase price. At present, providing certain discounts for one-time payment of commercial housing has basically become a unified preferential activity, but the discount degree is different.

2. The process is simple. To buy a house with full payment, you only need to sign a purchase contract with the seller. There is no need to go through the process and sign a contract with the bank, so it saves time and convenience. Especially for those who purchase a second home, not only do they avoid the expense of rising loan interest rates, but they also save time and energy in dealing with banks.

3. Easy to take action. It is more convenient to resell a house purchased with full payment. It does not have to be subject to bank loans. It is also easier to sell after the house prices rise. Even if you don't want to sell, you can still get a mortgage from a bank when you encounter financial difficulties.

4. High pressure. A one-time full payment for a house will become a considerable burden for those buyers with a weak financial foundation. If you don’t have sufficient funds, the one-time investment in buying a house is too large, which may affect the buyer’s other financial income.

5. The variables are large. For most of the properties on sale for free, buyers choosing to make a one-time payment will increase the risk of buying a home. If you choose a one-time payment, each property will require the buyer to pay the full amount of the house during the pre-sale stage and sign a "Commercial Housing Sales Contract."

However, during the transaction process, many pre-sale properties have the problem of incomplete five certificates. Although the sales staff promised to complete the procedures within a certain period of time, it is full of unknowns for home buyers. variables, one of the serious problems is “difficulty in filing”.

What are the characteristics of a house purchase loan?

Buying a house with a loan requires less investment for the borrower, so the funds are more flexible. However, the process of buying a house is complicated. The house has a mortgage and it is complicated to sell it again.

1. Low investment. Purchasing a house through a mortgage loan has become a common phenomenon. A loan, that is, borrowing money from a bank to buy a house, allows you to buy your own house without spending a lot of money right away. Therefore, a major advantage of taking a loan to buy a house is that you can buy a house with less money.

2. The risk is small. A mortgage loan is borrowing money from a bank to buy a house. In addition to the home buyer being concerned about the advantages and disadvantages of the house, the bank will also review the value of the house and whether it has a mortgage. In this way, the insurance of buying a house will be improved.

3. The process is complicated. Another trouble with buying a house with a loan is that the procedures are more cumbersome than buying a house with full payment, provident fund loans are more cumbersome than commercial loans, and portfolio loans are more cumbersome than provident fund loans. If there is a situation such as a shortage of bank loan quotas, the approval process will be more stringent, the approval process will be slowed down, and the process and timeliness will be further lengthened.

This is the end of the introduction on whether it is better to borrow money to buy a house, take out loans and loans to buy a house, or save money to buy a house. I wonder if you found the information you need?