Why do you need a loan to buy a house even if you have the full payment? You also have to pay interest on the loan, which is quite a lot. However, some people are unwilling to pay the full amount even if they have it, and choose to pay in installments. The answer is because a loan can not only save money, but also make money!
Why do you need a loan to buy a house even if you have the full payment? You also have to pay interest on the loan, which is quite a lot. However, some people are unwilling to pay the full amount even if they have it, and choose to pay in installments. The answer is because a loan can not only save money, but also make money!
1. Reasons for choosing a mortgage
Let’s do the math. First of all, the current interest rate for commercial loans over five years is 4.9%, and the interest rate for provident fund loans over five years is 3.25%. As an assumption, if the full payment for a property is 1 million, and the buyer only has 1 million in cash, then after the full payment is made, there will be no cash in hand, and they can only hope for the increase in housing prices, and the increase in housing prices will only Can be obtained when the property is sold.
But what if the full payment is not made? For an installment mortgage, if the down payment for the first home is calculated as 30%, there will be 700,000 cash available. In other words, as long as the benefits obtained from 700,000 yuan exceed the mortgage interest rate, it is a profit.
There are many financial products on the market with higher than 4.9%. If we use a commercial loan with an interest rate of 4.95% and a loan of 700,000 yuan for 30 years, the monthly payment is 3,715.09 yuan, and the annual repayment is 44,581.08 yuan. 700,000 per year, the annual acquisition rate is 6.4%. In this way, not only will you own a house, but you will also have 700,000 in cash after 30 years. If calculated according to this plan, provident fund loans will be more favorable.
2. If house prices fall, are there any benefits to getting a mortgage?
Based on the above analysis, it seems that it is relatively better to choose a loan to buy a house. It seems that there is only one risk in buying a house with a loan, and that is the risk of a sharp drop in house prices. The above solutions are still valid if house prices fall slightly or consolidate. Let’s take a look at this set of data again:
Inflation is a thief that eats away wealth. If calculated according to this data, a monthly payment of three to four thousand now will be nothing in thirty years. . After all, in the last century, people still had to pay hundreds of dollars a month. Secondly, in the years of commercial housing reform, real estate has taken the lead among financial products. So the risk of a sharp fall in house prices doesn't make sense.
Taking a step back, even if house prices plummet, making installment payments seems to be the right choice. From an economic and financial perspective, capital has time value, and according to the industry analysis above, current prices The rising coefficient has exceeded the deposit interest rate for one-year fixed deposits, which means we are now in the era of negative interest rates. Regardless of whether house prices are rising or falling, as long as it is in this state, relatively speaking, being able to get a loan is actually a kind of wealth.
All in all, don’t think about how much interest you pay, and don’t think about the plummeting housing prices. In the decades of the loan, compared with inflation, both the plummeting and the interest will be made up. Just believe that the money you save by taking out a loan to buy a house, after 10, 20, or 30 years of operation, the money you earn will be much greater than the interest you paid to buy the house.
In addition, you have to know how many people want to cash out their properties as mortgage loans now! Moreover, banks and other lending institutions are not easy to lend now. They are all very tight, so if you have the opportunity to get a mortgage loan, don’t hesitate!